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LivestreamMenuShares of generator maker ERock soared 23% Wednesday after it reported a 1000% increase in its order backlog. Now analysts are sounding upbeat on the company’s prospects. The $1.7 billion in forthcoming business is being driven by a huge order from artificial intelligence software company Anthropic, which has agreed to purchase 470 megawatts of power from ERock. Anthropic is expected to go public some time later this year with a valuation well above $1 trillion. Analysts at Bank of America raised their price target on ERock to $19 from $16 on Thursday and reiterated a buy opinion on the stock, which closed Wednesday at $13.82. ERock went public in a June 10 initial public offering priced at $21.50 in a sale that Bank of America helped organize. EROC 5D mountain ERock shares over the past five days “Anthropic increases our confidence that additional large opportunities will convert into firm contracts,” Ross Fowler at Bank of America wrote to clients on Thursday. “Anthropic’s 470 MW award is EROC’s third major data-center contract and adds another blue-chip customer.” Power generation is a key component of the AI buildout that is partly reshaping the U.S. economy. Across the country, technology companies are building enormous data centers and server farms that consume vast amounts of power and stress municipal and regional electrical grids. ERock builds modular gas generators that the Houston-based supplier says “address grid constraints, interconnection delays and outage risks while accelerating speed-to-power for new and expanding operations.” Anthropic’s order from ERock is for its RockBlock generators, with operations and maintenance (O & M) services following in separate contracts, according to Bank of America. “We include Anthropic as product-only in our model, phased across 2027-28, and do not assume installation or O & M revenue until those scopes are contracted,” Fowler said.Read More
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