Five things to watch in markets in the week ahead
Investing.com - Baird maintained its Outperform rating and $706.00 price target on GE Vernova (NYSE:GEV), a prominent player in the Electrical Equipment industry that has delivered an impressive 174% return over the past year, in a research note focused on the company’s aeroderivative turbines.
The research firm highlighted that aeroderivative turbines have recently gained attention for their potential to supplement GE Vernova’s heavy-duty turbine production capacity in its Gas business.
Baird noted that these aeroderivative turbines leverage GE’s supply chain and, while physically smaller and representing a smaller portion of the Gas business, offer unique applications for data centers and AI infrastructure.
The firm’s analysis is part of a continuing series examining GE Vernova’s product portfolio, following an earlier spotlight on the company’s heavy-duty turbines.
Similar to the heavy-duty turbine segment, Baird sees pricing power for GE Vernova with its aeroderivative turbines, supporting the firm’s maintained Outperform rating.
In other recent news, GE Vernova has been in the spotlight with several notable developments. The company received an upgrade from Melius Research, which raised its rating from Hold to Buy, setting a price target of $740. This upgrade was attributed to improving fundamentals in the power generation sector. Additionally, UBS reiterated its Buy rating on GE Vernova, maintaining a price target of $760, highlighting strong growth in the power equipment sector. Goldman Sachs also increased its price target for the company to $715, maintaining a Conviction Buy rating, despite competitive pressures.
In terms of business operations, TPG has agreed to acquire GE Vernova’s Proficy Software business for $600 million, with potential additional proceeds based on future outcomes. This transaction will position Proficy as a standalone entity, serving over 20,000 customers. Furthermore, GE Vernova plans to cut 600 jobs across Europe, including 120 in France, as reported by CFE-CGC and CGT unions. These recent developments provide a comprehensive view of GE Vernova’s current business landscape.
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