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On Thursday, Jefferies updated its outlook for GE Vernova (NYSE:GEV), increasing the price target from $413 to $418 while maintaining a "Buy" rating. The adjustment comes as the firm extends its projections to fiscal year 2028, citing potential for the company to outperform its long-term management guidance. The analysts at Jefferies highlighted the strong demand in Power and Electrification sectors, combined with operational expenditures leverage, as key drivers for improved EBITDA margins. According to InvestingPro data, GE Vernova currently trades above its Fair Value, with a market capitalization of $89.7 billion and an EBITDA of $2.3 billion for the last twelve months.
The report anticipates that for the first quarter of 2025, GE Vernova’s revenue and EBITDA will exceed market expectations by 20% and 10 basis points respectively. With the company’s next earnings report due on April 23, 2025, investors following InvestingPro analysis can access detailed financial metrics and 14 additional ProTips about GEV’s performance. The analysts noted the company’s robust order backlog, with a reported $119 billion in remaining performance obligations (RPO), which is equivalent to 3.4 times the last twelve months’ revenue of $34.94 billion, providing a significant cushion for future revenue.
Jefferies’ analysts also pointed out that GE Vernova has minimal exposure to tariffs, with management indicating that less than 5% of the company’s operations would be affected. This limited exposure is seen as a positive factor in the current economic climate, where tariff-related concerns have impacted many industries. The company’s strong financial position is reflected in its impressive 143.72% return over the past year and an overall "GOOD" financial health score from InvestingPro’s comprehensive analysis.
The raised price target reflects confidence in GE Vernova’s ability to capitalize on its strong market position and operational efficiency. The company’s solid order backlog is expected to support sustained revenue growth, which, according to Jefferies, underpins the optimism surrounding the stock’s performance.
In summary, the updated analysis by Jefferies suggests that GE Vernova is well-positioned to exceed its long-term financial targets, with a favorable demand outlook and efficient cost management contributing to a positive forecast for the company’s financial performance.
In other recent news, GE Vernova is set to supply seven high-efficiency 7HA.02 hydrogen-enabled, gas-fired turbines for a massive natural gas-powered data center campus in Pennsylvania. This project, involving an initial capital investment projected to exceed $10 billion, is a collaboration with Homer City Redevelopment and Kiewit Power Constructors. Truist Securities reaffirmed its Buy rating and a $440.00 price target for GE Vernova following this announcement, viewing it as a significant affirmation of the company’s role in major infrastructure developments. Meanwhile, Mizuho (NYSE:MFG) Securities adjusted its price target for GE Vernova to $375 from $400, maintaining an Outperform rating while noting a slightly lower-than-anticipated EBITDA margin for the first quarter. JPMorgan also revised its price target for GE Vernova to $425, down from $436, but retained an Overweight rating, citing strong performance and advantageous tariff positioning.
Elsewhere, Macquarie initiated coverage on Dongfang Electric with an Outperform rating and a price target of HK$14.10, highlighting the company’s strong dividend yield and growth outlook. The firm added Dongfang Electric to its Marquee buy list, anticipating the stock price to see an upside of over 40% due to China’s energy sector developments. These recent developments reflect diverse strategic movements within the energy sector, impacting both GE Vernova and Dongfang Electric.
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