Analyst Ameet Thakkar of BMO Capital reiterated a Buy rating on GE Vernova Inc., with a price target of $590.00.
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Ameet Thakkar has given his Buy rating due to a combination of factors that highlight the promising future of GE Vernova Inc. A significant driver for this rating is the anticipated growth in the company’s gas power service revenues, particularly from long-term service agreements (LTSAs), which are expected to substantially increase by 2030 and beyond. This growth is projected to result in a significant rise in annual LTSA revenue by 2035, with improved gross margins compared to 2024.
Despite the recent surge in GEV’s stock price, which might make current valuation metrics appear high, Thakkar believes that the long-term potential of the company’s service revenues is not fully appreciated by the market. The expectation is that by the end of 2025, GEV will have a clear view of nearly $80 billion in additional service-related revenue, which is resilient to fluctuations in turbine equipment demand. This outlook supports a premium valuation compared to the broader market, driven by the anticipated growth in service revenues in the coming decade.
In another report released yesterday, UBS also initiated coverage with a Buy rating on the stock with a $614.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GEV in relation to earlier this year.