Goldman Sachs chief credit strategist Lotfi Karoui departs after 18 years - Bloomberg
Investing.com - Seaport Global Securities initiated coverage on GE Vernova (NYSE:GEV) with a Buy rating and a price target of $630.00 on Thursday. The stock, currently trading at $536.71 and near its 52-week high of $545.63, has demonstrated remarkable strength with a 63% year-to-date return. According to InvestingPro analysis, the company appears to be trading above its Fair Value.
The research firm highlighted GE Vernova as "a vital enabler and major beneficiary" of two global secular growth themes: the multivariate power supercycle and the golden age of natural gas. Seaport expressed particular bullishness on the company’s Power division, which represents 51% of 2024 revenue, and its Electrification division, accounting for 22%. With current revenues of $35.71 billion and a market capitalization of $146.23 billion, GE Vernova has established itself as a prominent player in the Electrical Equipment industry.
Seaport Global noted that GE Vernova’s Power division is among the world’s top three gas turbine OEMs, capitalizing on increased demand for heavy-frame and aeroderivative products to expand manufacturing capacity and improve pricing. The division also provides nuclear fuel and technology, including a proprietary SMR offering.
The firm projects GE Vernova’s revenue, EBITDA, and EPS for calendar years 2025 through 2027, forecasting growth from $36.8 billion in revenue with 8.4% EBITDA margin in 2025 to $45.0 billion with 14.6% margin by 2027.
According to Seaport, GE Vernova management aims to generate cumulative free cash flow exceeding $14 billion for 2025-2028, with one-third allocated to shareholder returns through regular dividends and share buybacks. The company currently maintains a healthy balance sheet with more cash than debt, earning a "GREAT" financial health score from InvestingPro, which offers 12 additional valuable insights about GEV’s financial position and growth prospects in its comprehensive Pro Research Report.
In other recent news, GE Vernova has been the focus of several analyst updates and strategic considerations. BMO Capital raised its price target for GE Vernova to $590, citing attractive earnings growth in its Gas Power business, particularly through long-term service agreements. UBS initiated coverage on GE Vernova with a Buy rating and a $614 price target, driven by its strong position in the global gas turbine market and anticipated earnings growth fueled by AI and data center electricity demand. BofA Securities also increased its price target to $550, reflecting higher revenue estimates for GE Vernova’s Power segment and projecting robust earnings growth in the coming years.
Additionally, GE Vernova is exploring the sale of its Proficy industrial software business, with potential valuations reaching up to $1 billion. The company is working with financial advisers and has begun reaching out to potential buyers. While these discussions are preliminary, the possible divestiture highlights GE Vernova’s strategic evaluation of its business units. These developments come amid broader industry trends and analyst expectations of continued growth and margin expansion for GE Vernova.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.