Generac Stock In Focus After DoE Selects Firm For $50M Award: Retail Maintains Caution

Shares of Generac Holdings Inc ($GNRC) were in focus on Monday after the firm disclosed that it has been selected to enter into negotiations by the Department of Energy (DOE) to receive an award for a grant of $50 million as part of the DOE's Grid Resilience and Innovation Partnership (GRIP).

GRIP Program, established by the Bipartisan Infrastructure Law, is a $10.5 billion investment to enhance grid flexibility, improve the resilience of the power system against extreme weather, and ensure American communities have access to affordable and reliable energy.

Generac said that under the terms of the project, microgrids, which will utilize battery energy storage and be managed by distributed energy resource management systems (DERMS), will form virtual power plants (VPPs) capable of delivering reliable load reduction during times of grid stress.

The firm claims the project will create an estimated 200 union construction jobs and 33 direct jobs, and contract approximately $27 million with businesses majority owned or controlled by underrepresented persons or groups of underrepresented persons.

“Some or all of this project will be executed in collaboration with the Northern California Laborers, Northern California Operating Engineers, Operators Local Union, Teamsters Local Union, Laborers Local Union, Carpenters Local Union, Masons Local Union, or the IBEW Local Union,” it said.

Despite the announcement, retail sentiment on Stocktwits inched lower into the ‘neutral’ territory from ‘bullish’ a day ago.

One Stocktwits user with a ‘bullish’ stance said the stock appears to be undervalued given its long-term growth potential and the tailwinds from falling interest rates in the coming times.

Also See: SLB Stock In Focus After Multiple Analysts Revise Price Target: Retail’s Extremely Bearish

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