The little engine that could – initiate with Buy

研报英文原文证据摘录

The little engine that could – initiate with Buy

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INNIO

The little engine that could – initiate with

Buy

Initiating Coverage: BUY | PO: 46.00 USD | Price: 38.24 USD

Pulling the AI train & capitalizing on data center demand 29 June 2026

We initiate on INNIO (INIO), a maker of reciprocating gas engines, with a Buy rating and Equity

$46 price objective. Our positive view is driven by INNIO’s fast-growing data center

business, capacity additions, and well-honed services business model. The company’s AndrewResearch ObinAnalyst

Jenbacher engines have already won contracts to power multiple gigawatts (GW) of data BofAS

centers. Further, INNIO plans to double its engine capacity from 3.5 GW in 2025 to 7.0 +1andrew.obin@bofa.com646 855 1817

GW by 2028. We forecast revenue to grow at a 31% CAGR through 2028E. David Ridley-Lane, CFA

Research Analyst

Powering data centers and balancing the grid BofAS+1 646 855 2907

Data centers comprise 21% of trailing 12 months equipment revenue, but 61% of david.ridleylane@bofa.com

trailing 12 months equipment orders. Developers are turning to on-site power Devin Leonard

generation in response to long grid connection wait times. We have identified over 60 BofAS

GW of data center projects with on-site power generation in pre-construction activities. +1 646 855 3698

devin.leonard@bofa.com

As the world adopts more solar and wind power generation, the need for load balancing

dispatchable power is also growing. For example, the US on-grid fleet of natural gas

engines has grown at a 7% CAGR over 2010-25.

Stock Data

Risks: capacity ramp, industry-wide capacity, BESS Price 38.24 USD

Doubling equipment capacity in three years comes with risks of construction delays and Price Objective 46.00 USD

ramping labor.