GE Vernova stock price target cut to $440 by Truist Securities

On Thursday, Truist Securities analyst Jordan Levy adjusted the price target for GE Vernova (NYSE:GEV), reducing it to $440 from $470, while maintaining a Buy rating on the stock. The adjustment follows the observation of an uptick in server system orders for a major technology company, which is expected to impact GE Vernova positively. According to InvestingPro data, GE Vernova, a prominent player in the Electrical Equipment industry with a market capitalization of $87.7 billion, currently trades at $306.80 per share. The company’s strong financial position is evidenced by its healthy balance sheet, with cash exceeding debt levels.

Levy’s commentary highlighted an increase in orders for DELL’s AI server systems, as reported by Greater China Tech Hardware analyst Howard Kao. Kao has revised his forecast for Wistron’s GB200 rack shipments for the current year, increasing the estimate from 2,500 units to approximately 4,000 units. This surge is attributed to significant orders from major US enterprise customers.

Furthermore, Kao anticipates that AI server rack-level shipments will reach 5,000 units in CY26, up from the previous estimate of 2,800 units. This projection is based on the expectation that a major US enterprise customer will continue to expand its rack-level business into CY26. Wistron, which is a key ODM partner for DELL, handles the assembly of GB200 racks up to the L10 tray level. The additional 1,500 units in Wistron’s GB200 rack shipments for CY25 are seen as a direct positive indicator for DELL’s AI server order backlog and revenue for FY26.

The specific timeframe for the shipment of all 4,000 GB200 systems remains unclear, but momentum is expected to build starting in the second quarter of CY25. While the identity of the customer placing these substantial orders with DELL has not been disclosed, Levy believes it is likely a repeat purchase order from one of DELL’s core T2 CSP customers. This information suggests a strong demand for DELL’s AI server products, which in turn could positively influence GE Vernova’s market performance.

In other recent news, GE Vernova has been the subject of several updates from financial analysts and industry observers. Jefferies raised its price target for GE Vernova to $413, maintaining a Buy rating, driven by a robust order book and growth in service revenue obligations. Fitch Ratings revised GE Vernova’s outlook from Stable to Positive, affirming its ’BBB’ rating, citing growth in the Power and Electrification backlog and improved operational execution. BMO Capital Markets adjusted its price target for GE Vernova to $420, down from $471, but maintained an Outperform rating after discussions with company executives highlighted optimism in the Power and Electrification sectors.

Additionally, GE Vernova and Amazon (NASDAQ:AMZN) Web Services (AWS) have entered a strategic agreement to electrify data centers, aiming to enhance grid security and promote sustainable energy use. The partnership will also explore opportunities in onshore wind development and leverage GE Vernova’s expertise in advanced research and consulting services. Meanwhile, RBC Capital Markets maintained an Outperform rating for Shell PLC (LON:SHEL), despite rising costs in the industry, with expectations of improved EBITDA margins by 2028. These developments provide a snapshot of the ongoing strategic moves and financial assessments influencing GE Vernova and Shell PLC.

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