BofA update shows where active managers are putting money
Investing.com - BMO Capital raised its price target on GE Vernova (NYSE:GEV) to $690.00 from $590.00 on Friday, while maintaining an Outperform rating on the stock. The company, currently trading near its 52-week high of $633.72, has demonstrated remarkable performance with a 290% return over the past year. According to InvestingPro data, the stock currently appears overvalued based on its Fair Value analysis.
The firm cited signals of power market tightening as a key factor behind the decision, rather than GE Vernova’s second-quarter earnings beat and raised guidance for fiscal year 2025.
BMO Capital specifically pointed to GE Vernova’s expanded sales of aeroderivatives to Crusoe and the PJM Capacity auction as recent examples of the tightening power market.
The research firm noted that GE Vernova is already running ahead of targets it had set for itself to reach by 2028, contributing to the positive outlook.
While acknowledging the cyclical nature of the power sector, BMO Capital believes the magnitude and urgency of investment in the sector suggests more room for growth, supporting its continued constructive view on GE Vernova.
In other recent news, GE Vernova has reported its second-quarter 2025 earnings results, which have led to several analysts adjusting their price targets for the company. BMO Capital reiterated its Outperform rating and increased its price target to $631, citing strong results and order flows as indicators of positive momentum in the company’s margin opportunities. Citi raised its price target to $670 while maintaining a Neutral rating, noting that GE Vernova’s shares outperformed significantly despite a "relatively modest upside" to the 2025 outlook. Jefferies also raised its price target to $620, maintaining a Hold rating and attributing the increase to strong management commentary following the earnings report.
Wolfe Research reiterated its Peerperform rating, emphasizing GE Vernova’s significant role in the energy transition as a top player in Gas, Onshore Wind, and Transmission & Distribution equipment and services. BofA Securities increased its price target to $725, maintaining a Buy rating, and highlighted improving pricing conditions in the Gas Power services segment. BofA also mentioned that while pricing growth in the Electrification segment may slow, volume growth and improving variable cost leverage are expected to continue. These developments reflect analysts’ varied perspectives on GE Vernova’s performance and future potential.
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