Generac Holdings Inc (NYSE:GNRC) stock was last seen up 2.3% at $140.11, after Wells Fargo upgraded the power generator to "overweight" from "equal weight," with a price-target hike to $195 from $186. The firm cited AI data center growth, seeing an opportune buying opportunity after the shares' recent slide.
GNRC notched its fifth-straight daily loss yesterday, still down 13.1% since the start of this week. The stock fell below several long-term trendlines during the tumble, now underneath all moving averages between the 10- and 320-day. Year to date, the equity is down 10.6%.
Options bulls have picked up on Wells Fargo's sentiment, with Generac calls being picked up at double the average intraday pace. Expiring at the end of the day, the December 141 call is the most popular.
A short squeeze could help the shares on their rebound. Short interest has been building, and now represents 7.1% of the stock's available float, or nearly four days' worth of pent-up buying power.
It's worth noting that GNRC tends to outperform options traders' volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 99 out of 100.
