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Investing.com - BMO Capital has reiterated its Outperform rating and $690.00 price target on GE Vernova (NYSE:GEV) following the company’s acquisition announcement. According to InvestingPro data, GE Vernova, currently valued at $159.34 billion, is trading above its Fair Value, with analyst targets ranging from $420 to $760.
GE Vernova disclosed on Tuesday that it will acquire the remaining 50% ownership stake in its North American Transformer joint venture, Prolec GE, for $5.275 billion.
The acquisition price represents 9.4 times the expected 2028 EBITDA without accounting for synergies, according to BMO Capital.
When including the midpoint of the estimated $60 to $120 million in cost synergies, the multiple drops to approximately 8.1 times expected 2028 EBITDA.
BMO Capital noted that the acquisition price "appears attractive" as the firm believes GE Vernova’s EBITDA projections excluding synergies "likely embeds a healthy dose of conservatism." The company has demonstrated strong momentum, with an impressive 82.63% year-to-date return. For deeper insights into GE Vernova’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, GE Vernova announced plans to acquire the remaining 50% stake in Prolec GE from Xignux for $5.275 billion, with the acquisition expected to close by mid-2026 pending regulatory approvals. This move is part of GE Vernova’s ongoing strategy to consolidate its operations in the grid equipment sector. Meanwhile, GLJ Research has raised its price target for GE Vernova to $758, maintaining a Buy rating, while Mizuho increased its target to $677, albeit with a Neutral rating, citing concerns over onshore wind sales and profitability. In contrast, Rothschild Redburn downgraded GE Vernova to Sell, setting a price target of $475, due to skepticism about the company’s long-term margin outlook. Additionally, GE Vernova and Verizon have launched the MDS Orbit industrial wireless platform, offering utilities enhanced capabilities for managing electrical grid infrastructure through Verizon’s network. These developments highlight GE Vernova’s strategic maneuvers in acquisitions and technology partnerships, alongside mixed analyst perspectives on its financial prospects.
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