UBS reiterates Buy rating on GE Vernova stock, maintains $760 price target

Investing.com - UBS maintained its Buy rating on GE Vernova (NYSE:GEV) with a price target of $760.00, citing the company’s strong growth in the power equipment sector. According to InvestingPro data, analysts remain bullish with a consensus recommendation of 1.88 (Strong Buy), though the stock currently trades above its Fair Value.

GE Vernova manufactures power equipment such as gas turbines used for electricity generation and has seen substantial growth driven by increasing energy demand from data centers and broader electrification trends. The company’s revenue grew 8.45% in the last twelve months to $36.62 billion, with healthy gross margins of 18.47%.

The company’s Power order rates currently stand 50% above current revenue levels, while operating profits increased by 47% in the most recent reporting period compared to the same period last year.

GE Vernova has emerged as the best-performing stock within the XLI industrial sector index this year, gaining 77% and reaching a market capitalization of $158 billion.

The strong performance has made GE Vernova one of the most closely monitored companies across the industrial sector, according to UBS.

In other recent news, GE Vernova has reported strong financial results, particularly in its Power segment, which achieved 9% organic growth and a 55% incremental margin. Following these results, the company raised its full-year guidance, prompting UBS to reiterate its Buy rating with a $614 price target. Meanwhile, Goldman Sachs has increased its price target for GE Vernova to $715, maintaining a Conviction Buy rating due to a positive growth outlook. Jefferies also raised its price target to $658, citing higher EBITDA estimates and a shift toward higher-margin services work. In contrast, Guggenheim downgraded GE Vernova from Buy to Neutral, removing its $600 price target, as it believes the current stock valuation already reflects optimistic estimates. BMO Capital raised its price target to $690, maintaining an Outperform rating, driven by signs of power market tightening. These developments reflect a range of perspectives on GE Vernova’s financial performance and future potential.

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