Strong Demand and Pricing Power Justify Buy Rating for GE Vernova Inc.

Wells Fargo analyst Michael Blum has maintained their bullish stance on GEV stock, giving a Buy rating on May 16.

Michael Blum has given his Buy rating due to a combination of factors including the strong demand for GE Vernova Inc.’s heavy-duty gas turbines. The company has already sold out its capacity through 2025 and is expected to sell all available capacity each year through 2028, totaling 56 GW. This robust demand is supported by a significant backlog of orders and slot reservation agreements, indicating a solid revenue stream for the coming years.
Additionally, the potential for higher pricing on remaining open slots further enhances the company’s financial outlook. GE Vernova has recently increased prices, and if they can secure additional bookings at these elevated prices, it could lead to improved EBITDA margins in 2028. These factors collectively suggest a positive growth trajectory for the company, justifying the Buy rating.

According to TipRanks, Blum is a 5-star analyst with an average return of 11.1% and a 65.94% success rate. Blum covers the Energy sector, focusing on stocks such as Venture Global, Inc. Class A, Genesis Energy, and Kinder Morgan.