GE Vernova: Long-Term Earnings Power and Hyperscaler-Driven Growth Undervalued, Justifying a Buy Rating

Analyst Austin Wang of GLJ Research maintained a Buy rating on GE Vernova Inc., boosting the price target to $1,087.00.

Austin Wang has given his Buy rating due to a combination of factors that, in his view, strongly support GE Vernova’s long‑term earnings trajectory despite a lack of near‑term catalysts. He believes the market is overly focused on 2026–2027 and near‑term headlines, while underappreciating the company’s expanding earnings power beyond 2028, reflected in his above‑consensus EBITDA outlook. His analysis highlights robust fundamentals in Power Equipment, where production slots are filling and gas turbine capacity is set to step up meaningfully through 2028, underpinned by growing engagement with hyperscale data center customers. He also emphasizes that long‑dated service contracts give management strong visibility into future performance and support a guidance approach geared toward conservative floors rather than wide ranges, suggesting further upside surprise potential.

In Power Services, Wang sees validation and expansion of his thesis: rising service volumes, a richer mix toward higher‑value HA turbines, and improving pricing dynamics all support sustained profit growth. In Electrification, he notes that the equipment backlog, once viewed as temporary, now appears structurally stronger, with 2028 backlog expected to roughly double even today’s elevated levels. The planned Prolec integration and associated capacity expansion are viewed as key enablers of the next wave of growth, while added disclosure around Power Transmission strengthens his conviction in the hyperscaler‑driven demand story. Incorporating these drivers into his valuation, Wang raises both his estimates and his 12‑month target price, concluding that the stock’s current valuation does not fully reflect its long‑term earnings potential and justifies a Buy rating.

According to TipRanks, Wang is an analyst with an average return of -7.0% and a 16.67% success rate.

In another report released on January 7, Barclays also maintained a Buy rating on the stock with a $830.00 price target.