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On Wednesday, Mizuho (NYSE:MFG) Securities adjusted its outlook on GE Vernova shares (NYSE:GEV), reducing the price target to $375 from $400, while sustaining an Outperform rating on the company’s stock. Currently trading at $328.56, GEV sits between analyst targets ranging from $272.50 to $500. The revision reflects a tempered expectation for the first quarter, with revenue growth projected to meet the market consensus but with a slightly lower than anticipated EBITDA margin. According to InvestingPro, GEV has demonstrated remarkable strength with a 152.79% return over the past year, though current analysis suggests the stock may be trading above its Fair Value.
Analysts at Mizuho anticipate GE Vernova’s Q1 revenues to increase at a mid-single-digit rate year-over-year, aligning with general market expectations. The company, which generated $34.94 billion in revenue over the last twelve months, will report its next earnings on April 23, 2025. However, the predicted EBITDA margin has been set at 4.2%, slightly below the consensus estimate of 4.7%. Despite this, the margin still represents a 160 basis points improvement from the previous year. InvestingPro subscribers have access to 12+ additional exclusive insights about GEV’s financial health and growth potential.
The firm’s full-year revenue guidance, ranging between $36 billion and $37 billion, is not expected to change. With a current market capitalization of $89.81 billion and trailing twelve-month EBITDA of $2.315 billion, GE Vernova remains a significant player in the market. Nonetheless, Mizuho predicts that GE Vernova will adjust its full-year EBITDA guidance to the midpoint of the high-single-digit range. This estimate is about 8% below the consensus, at 8.6%, due to the negative impact of import tariffs. The estimated tariff impact is around 100 basis points, which, according to Mizuho, will likely be shared with suppliers and customers.
The 6% reduction in the price target to $375 is a result of updating the 2026 EBITDA multiples for the core segments and comparing them to the new businesses. While near-term EBITDA forecasts have been lowered due to the tariff effects, Mizuho’s 2028 EBITDA projection remains unchanged at approximately $8 billion. This figure is higher than the consensus but corroborates the findings from the firm’s buy-side checks. For comprehensive analysis and detailed financial metrics, investors can access GE Vernova’s full Pro Research Report, available exclusively on InvestingPro.
In other recent news, GE Vernova has been the focus of several analyst updates and project announcements. JPMorgan adjusted its price target for GE Vernova to $425, maintaining an Overweight rating, citing the company’s robust performance and strategic positioning in tariffs. Meanwhile, Truist Securities reaffirmed a Buy rating with a $440 price target after GE Vernova announced its involvement in a significant project to supply gas turbines for a data center mega-campus in Pennsylvania. This project is part of a $10 billion initiative to transform a former coal plant into a natural gas-powered facility, highlighting GE Vernova’s role in major infrastructure developments.
Jefferies also raised its price target for GE Vernova to $413, reflecting confidence in the company’s substantial order book and growth prospects despite challenges in the wind energy sector. Additionally, Truist Securities adjusted its price target from $470 to $440, still maintaining a Buy rating, following increased orders for AI server systems that could positively impact GE Vernova. These developments underscore the company’s strategic efforts to leverage its diversified portfolio, including gas and electrification segments, to sustain growth amidst industry challenges.
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