Tecogen Inc (TGEN) Stock Forecast & Price Target

Tecogen Inc. demonstrates a strong growth trajectory in its revenue across all business segments, with product revenue projected to rise from $10.3 million in FY25 to $52.9 million by FY27, indicating robust demand for its cogeneration systems and associated accessories. Additionally, recurring service sales are anticipated to increase modestly from approximately $16.6 million in FY25 to $20.2 million in FY27, suggesting a solid foundation for ongoing revenue streams as more systems are deployed. Key catalysts, such as potential data center order announcements and the partnership with Vertiv, could further enhance equity performance by driving efficiency and operational growth.

Tecogen Inc. is projected to experience a decline in consolidated margins due to an increased mix of product sales, which typically yields lower profitability. Additionally, forecasts for the Energy Production segment indicate a decreasing sales trajectory, with expected revenues of $1.6 million in FY25, dropping to $1.4 million by FY27. Compounding these challenges, the company is encountering significant sales pressures stemming from regulatory changes in the crucial New York City market, further contributing to its negative outlook.