BUZZ-Wells Fargo upgrades Generac Holdings to 'overweight'

** Shares of power equipment maker Generac Holdings GNRC.N rise 1.57% to $139.14

** Wells Fargo upgrades GNRC to "overweight" from "equal weight"; raised PT to $195 from $186, a 42.3% upside to the stock's last close

** Brokerage cites stronger‑than‑expected demand for diesel generators as AI‑driven data‑center buildout continues

** Wells Fargo says the market is undervaluing Generac's data‑center business at only about $4/share, even though analysts say it could be worth ~$61/share if the company captures 10% of the estimated $12 billion total addressable market for data center diesel gensets

** GNRC is nearing a major hyperscaler contract, with Amazon trialing its diesel gensets and Google running a large request for proposal, creating potential multi‑hundred‑million dollar deals, brokerage says

** Recent slide in GNRC's shares creates an attractive entry point and is well‑positioned against Caterpillar CAT.N, with lower‑cost gensets and industry supply constraints likely helping it gain share, brokerage says

** 15 of 23 analysts rate the stock "buy" or "strong buy", 8 "hold"; median PT is $207 - data compiled by LSEG

** As of last close, GNRC was down 11.6% YTD

(Reporting by Pragyan Kalita in Bengaluru)

((Pragyan.Kalita@thomsonreuters.com))