GE Vernova (GEV) stock is experiencing massive investor belief, surging over 15% on Wednesday and hitting a new 52-week high of $720.02. This surge follows the power equipment company’s investor meeting, where management provided a stunning financial outlook that crushed already elevated expectations. The confidence is so high that JPMorgan (JPM) analyst Mark Strouse raised his price target to an unprecedented $1,000, setting a new high-water mark on Wall Street.
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The company’s success is a dual one, blending strong business performance with investor belief. GE Vernova nailed the investor gathering by guiding for $52 billion of revenue and a 20% adjusted EBITDA margin by 2028, significantly up from its previous outlook of $45 billion and 14%. To reinforce this outlook, the company boldly doubled its quarterly dividend to $0.50 per share and increased its share repurchase authorization to $10 billion.
GE Vernova’s Electrification Backlog Is Expected to Double by 2028
The optimism fueling Strouse’s $1,000 target is underpinned by massive order activity and growth visibility, especially in the grid business. JPMorgan noted that fourth-quarter “order activity significantly exceeded expectations, and the company continues to test higher pricing on each deal.”
Crucially, the electrification business, which handles the essential grid infrastructure for the energy transition, has positively surprised. Its backlog is now expected to double by 2028, after already doubling from year-end 2023 levels electrification business also positively surprised. The company expects total backlog to reach approximately $200 billion by year-end 2028, up from $135 billion currently, further securing years of future revenue.
GEV’s Premium Valuation Fails to Deter Bulls
Despite the euphoria, the stock is trading at a premium: roughly 31 times estimated EBITDA expected over the coming 12 months, which is significantly higher than the average industrial company’s multiple of around 22 times. While some analysts, like Guggenheim’s Joseph Osha, see the good news as “already in the stock” and maintain a Hold rating, the majority sentiment is overwhelmingly bullish.
Is GE Vernova Stock a Good Buy?
Analyst sentiment toward GE Vernova (GEV) is rated as a Moderate Buy, based on the consensus of 18 Wall Street analysts tracked in the last three months. Of these ratings, 12 analysts call it a Buy, five recommend a Hold, and one recommends a Sell. The average 12-month GEV price target sits at $689.40. This target implies a downside potential of 2% from the last price.
