Intel stock spikes after report of possible US government stake
Investing.com - JPMorgan has maintained its Overweight rating and $620.00 price target on GE Vernova (NYSE:GEV), currently trading at $559.61 and near its 52-week high of $560.63, ahead of its second-quarter earnings report scheduled for July 23. According to InvestingPro analysis, the stock appears overvalued at current levels, despite its impressive 206.7% return over the past year.
The investment bank noted that investor expectations appear high heading into the quarterly results announcement and cautioned that shareholders should be prepared for a potential temporary decrease in Power segment firm orders during the second quarter.
Despite this potential short-term weakness in orders, JPMorgan expects slot reservation momentum to remain strong for the energy company.
The firm also anticipates that demand commentary from GE Vernova will continue to be robust when management discusses results.
JPMorgan suggested there is potential for GE Vernova’s management to provide updates on additional Service Agreement (SRA) additions at the elevated pricing levels that were implemented earlier this year.
In other recent news, GE Vernova plans to create 250 new jobs at its Charleroi, Pennsylvania factory as part of a broader initiative to invest up to $100 million in the state. This expansion is part of a larger $9 billion global investment plan through 2028. The company also secured an order for seven natural gas turbines for the Homer City Energy Campus, which will be converted to a natural gas-powered data center. In analyst updates, Seaport Global Securities initiated coverage on GE Vernova with a Buy rating, emphasizing the company’s role in global power growth themes. BMO Capital raised its price target for the company, maintaining an Outperform rating, and highlighted attractive earnings growth in its Gas Power business. UBS also initiated coverage with a Buy rating, projecting significant earnings growth driven by increasing electricity demand from AI and data centers. Additionally, GE Vernova is exploring the sale of its Proficy industrial software business, which could be valued up to $1 billion. The company is working with financial advisers and has begun reaching out to potential buyers.
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