Power Solutions (PSIX) International Set for Valuation Growth on Data Center Demand and Infrastructure Shifts

Core Viewpoint - Power Solutions International Inc. (NASDAQ:PSIX) is identified as a strong investment opportunity for 2026, driven by increasing demand for data center power systems and significant updates to US infrastructure [1][3]. Group 1: Analyst Ratings and Price Targets - Freedom Capital initiated coverage of Power Solutions with a Buy rating and a price target of $87, citing the company's favorable position in the market [1]. - Jefferies also initiated coverage with a Buy rating and a price target of $101.51, emphasizing the company's role in the diesel generator supply chain amid international competitors' capacity constraints [2]. Group 2: Financial Performance - In Q3 2025, Power Solutions achieved record sales of $203.8 million, marking a 62% increase compared to Q3 2024 [3]. - The company reported a net income of $27.6 million, up 59%, and a diluted EPS of $1.20, which is a $0.45 increase from the previous year's $0.75 [3]. - The revenue growth was primarily driven by an $85.3 million increase in the power systems end market, particularly in the data center and oil and gas sectors [3]. Group 3: Company Overview - Power Solutions International Inc. designs, engineers, manufactures, markets, and sells engines and power systems across various regions, including the US, North America, the Pacific Rim, and Europe [4].