Roth/MKM initiates Tecogen stock with Buy rating on data center cooling potential

Published 18/08/2025, 07:48
Roth/MKM initiates Tecogen stock with Buy rating on data center cooling potential

Investing.com - Roth/MKM initiated coverage on Tecogen (OTC:TGEN) with a Buy rating and a $15.00 price target on Monday. The stock, currently trading at $8.29, has delivered an impressive 917% return over the past year, though InvestingPro analysis indicates the stock is trading above its Fair Value.

The research firm cited Tecogen’s potential to capitalize on opportunities in the data center cooling market, projecting revenue growth of 50% in fiscal year 2026 and 74% in fiscal year 2027. Roth/MKM expects Tecogen to reach positive adjusted EBITDA in late 2026, a significant improvement from the current -$3.14 million EBITDA. The company maintains a moderate debt level with a debt-to-equity ratio of 0.41.

Tecogen, which specializes in cogeneration technology that simultaneously produces electricity and heat or cooling from a single fuel source, entered a global strategic partnership with Vertiv (NYSE:VRT) effective March 1, 2025.

Under the two-year agreement, Vertiv will market Tecogen’s engine-driven chillers as part of its worldwide offering for data centers, establishing a foundation for future supply arrangement negotiations.

Tecogen management estimates that a single small-to-medium-sized AI data center site of approximately 50 megawatts could generate product sales exceeding $13 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.