Analyst Julien Dumoulin Smith of Jefferies maintained a Buy rating on GE Vernova Inc. (GEV – Research Report), boosting the price target to $413.00.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors that indicate a strong long-term outlook for GE Vernova Inc. The company has a robust order book with commitments extending to 2040, which provides a solid foundation for future growth. Despite challenges in the wind segment, the gas and electrification businesses present significant opportunities, with gas turbine demand expected to grow significantly through 2030.
Moreover, the company’s pricing power is evident, with turbine prices on awarded contracts having increased substantially. This suggests potential for improved margins in the backlog. The remaining performance obligations (RPO) ratio is also strong, offering a diversified revenue base. The confidence in future revenue growth and margin expansion further supports the Buy rating, with expectations of exceeding revenue guidance in the coming years.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $427.00 price target.