Bill Gross warns on gold momentum as regional bank stocks tumble
Investing.com - Jefferies has lowered its price target on GE Vernova (NYSE:GEV) to $658.00 from $668.00 while maintaining a Hold rating on the stock. The company, currently valued at $171.22 billion, has shown remarkable performance with a 147% return over the past year, though InvestingPro analysis indicates the stock is trading above its Fair Value.
The firm expects a subdued third quarter for GE Vernova following the company’s September turbine order preview. Jefferies noted investors should watch for positive seasonality in gas services and electrification segments in the fourth quarter. With annual revenue of $36.62 billion and strong cash flows covering interest payments, the company maintains a solid financial position despite near-term challenges.
The research firm anticipates GE Vernova’s 2028 slots will be fully booked, likely adding approximately 9 GW of orders and slots, plus strong order growth for the Electrification segment. This includes an estimated $1.5 billion in synchronous condensers alone.
Jefferies also expects "incrementally bearish" commentary on GE Vernova’s Wind business, citing likely disappointing safe harbor order activity and more acute permitting issues affecting the segment.
Despite these mixed factors, Jefferies maintained its Hold rating on GE Vernova shares while adjusting the price target downward by $10. Investors anticipating the company’s next earnings report on October 22 can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports.
In other recent news, GE Vernova has been in the spotlight with several notable developments. TPG has entered into a binding agreement to acquire GE Vernova’s Proficy manufacturing software business for $600 million, with the potential for additional proceeds based on future outcomes. This transaction will allow Proficy to operate as a standalone entity, serving over 20,000 customers in the manufacturing and infrastructure sectors. In terms of workforce adjustments, GE Vernova plans to cut 600 jobs across Europe, including 120 positions in France, as reported by CFE-CGC and CGT unions.
Analyst actions have also been significant for GE Vernova. Melius Research upgraded its rating on the company from Hold to Buy, setting a price target of $740, driven by improved fundamentals. Additionally, UBS reiterated its Buy rating with a $760 price target, highlighting the company’s robust growth in the power equipment sector. Meanwhile, Baird maintained its Outperform rating with a $706 price target, noting the potential of aeroderivative turbines to enhance GE Vernova’s production capacity. These developments reflect a period of strategic changes and analyst optimism for GE Vernova.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.