GE Vernova stock rating reiterated at Peerperform by Wolfe Research

Published 23/07/2025, 19:02
GE Vernova stock rating reiterated at Peerperform by Wolfe Research

Investing.com - Wolfe Research has reiterated its Peerperform rating on GE Vernova (NYSE:GEV), highlighting the company’s position as a key player in the energy transition. According to InvestingPro data, GEV has demonstrated remarkable performance with a 67.1% year-to-date return, though current trading multiples suggest the stock may be trading above its Fair Value.

The research firm identifies GE Vernova as a top-3 player in Gas, Onshore Wind, and Transmission & Distribution equipment and services, sectors that are expected to drive above-average sales growth through the end of the decade.

Wolfe Research notes that while offshore losses and challenging price/cost dynamics in Onshore/Grid have pressured margins, the company has a path to significant margin improvement through strong pricing, volume increases, project selectivity, and cost reduction initiatives that could drive EBITDA margins to high teens/low-20s by decade’s end.

The firm also points to GE Vernova’s solid net cash position, which is expected to build as free cash flow generation expands, potentially supporting dividend growth and "material share repurchase activity" in the future.

Despite describing GEV as "one of the most attractive equity stories" in its coverage universe, Wolfe Research maintains its Peerperform rating, citing valuation concerns that have become "increasingly challenging to support on both a relative and absolute basis," even when considering future earnings growth through 2028. For a deeper understanding of GE Vernova’s valuation and growth prospects, InvestingPro subscribers can access comprehensive financial health scores and 13 additional ProTips in our detailed research report.

In other recent news, GE Vernova reported strong second-quarter earnings for 2025, with both revenue and earnings per share (EPS) surpassing expectations. The company achieved an EPS of $1.86, exceeding the forecasted $1.50, which represents a 24% surprise. Revenue reached $12.4 billion, significantly higher than the anticipated $8.8 billion. This performance reflects positively on the company’s strategic direction and financial health. Additionally, BofA Securities raised its price target for GE Vernova to $725 from $620 while maintaining a Buy rating. The firm highlighted improving pricing conditions in the Gas Power services segment and projected continued volume growth and improved variable cost leverage in the Electrification segment. These developments underscore GE Vernova’s favorable position in the U.S. electricity market.

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