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Investing.com - RBC Capital has raised its price target on GE Vernova (NYSE:GEV) to $630.00 from $605.00 while maintaining a Sector Perform rating on the stock. The company, currently trading at $576, has seen its stock surge 114.8% over the past year, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The price target increase follows GE Vernova’s strong third-quarter 2025 results and what RBC describes as a "highly accretive acquisition" that was overshadowed by broader underperformance of companies linked to hyperscaler infrastructure. The company maintains robust financials with $36.62 billion in revenue and healthy cash flows that sufficiently cover interest payments.
RBC notes that GE Vernova continues to demonstrate positive momentum with favorable trends in both pricing and demand across its business segments.
The acquisition of Prolec was highlighted by RBC as an example of GE Vernova’s "broader reinvestment opportunity" to recycle positive cash flows back into the business.
The new price target is based on revised estimates and a valuation multiple of 12.5x 2030 EBITDA, reduced from the previous 13x multiple, which RBC attributes to mark-to-market adjustments relative to industrial peers.
In other recent news, GE Vernova has reported its Q3 2025 financial results, showing a mixed performance. The company missed its earnings per share (EPS) forecast, posting $1.64 compared to the anticipated $1.86. However, GE Vernova exceeded revenue expectations, generating $9.97 billion against a projected $9.16 billion. This revenue beat has been attributed to the company’s strategic initiatives and has garnered positive reactions from investors. Additionally, Goldman Sachs has raised its price target for GE Vernova from $715 to $735, maintaining a Conviction Buy rating. This decision follows the company’s strong quarterly results, with segment EBITDA reaching $977 million, surpassing both Goldman Sachs and consensus expectations. The Electrification and Power segments outperformed consensus estimates by 12% and 11%, respectively. These developments highlight GE Vernova’s robust performance despite the mixed earnings report.
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