Oklo stock tumbles as Financial Times scrutinizes valuation
On Wednesday, JPMorgan reaffirmed its positive stance on GE Vernova (NYSE:GEV), increasing the price target to $430 from $425 while maintaining an Overweight rating on the company’s shares. The upgrade follows GE Vernova’s first-quarter results, which surpassed expectations, particularly in the Power and Electrification segments. With a current stock price of $337.43 and analyst targets ranging from $272.50 to $500, the stock has demonstrated remarkable strength, posting a 120.91% return over the past year. According to InvestingPro analysis, GE Vernova currently appears overvalued relative to its Fair Value. The firm’s analysts highlighted robust order intake and favorable pricing trends, alongside the company’s confirmation of its fiscal year 2025 guidance, which now accounts for a $300-400 million impact from tariffs.
GE Vernova reported approximately 29 gigawatts (GW) of gas power equipment in its backlog and an additional 21GW of slot reservations that have not yet entered the backlog. This detail points to sustained demand visibility. Notably, only one-third of these slot reservations are attributed to data center customers, indicating a diversified growth strategy beyond just the data center market. With annual revenue of $34.94 billion and a robust financial health score rated as ’GOOD’ by InvestingPro, the company maintains a strong market position in the Electrical Equipment industry.
The company also demonstrated strong capital return actions, with $1.2 billion in share buybacks executed in the first quarter and an additional $300 million carried out in April. GE Vernova initiated its inaugural dividend, distributing roughly $70 million to shareholders.
In response to these developments, JPMorgan has adjusted its financial model to reflect the first-quarter performance and a reduced share count. However, the firm’s long-term estimates remain mostly unchanged and slightly above GE Vernova’s foundational floor projections. The new year-end 2025 target of $430 reflects these adjustments and JPMorgan’s continued confidence in GE Vernova, which it has also named as an Analyst Focus List pick. Trading at a P/E ratio of 65.88, the company has attracted strong analyst consensus, with detailed financial analysis and additional insights available through InvestingPro’s comprehensive research reports.
In other recent news, GE Vernova reported a strong financial performance for the first quarter of 2025, significantly surpassing earnings expectations. The company posted earnings per share of $0.91, exceeding the forecasted $0.63, and reported revenue of $10.2 billion, marking a 15% increase year-over-year. GE Vernova also returned $1.3 billion to shareholders through share repurchases, highlighting its commitment to shareholder value. In terms of analyst activity, Deutsche Bank (ETR:DBKGn) and JPMorgan analysts participated in the earnings call, showing interest in GE Vernova’s growth trajectory and the impact of tariffs on its operations. The company remains optimistic about its full-year 2025 revenue guidance of $36-$37 billion, despite challenges such as tariff-related cost pressures, which are expected to impact profitability. GE Vernova’s CEO, Scott Strazek, emphasized the company’s strategic direction and its focus on electrification and power segments, which continue to show strong demand. Additionally, the company completed its acquisition of Woodward (NASDAQ:WWD)’s gas turbine parts business to further integrate its gas power supply chain.
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