Street Calls of the Week
On Tuesday, Wells Fargo (NYSE:WFC) reiterated its Overweight rating on GE Vernova (NYSE:GEV), with a steadfast price target of $474.00. The firm’s analysis indicates strong demand for GEV’s heavy-duty gas turbine (HDGT) products, with the company’s entire capacity reportedly sold out through 2025. With a market capitalization of $121.9 billion and trading near its 52-week high of $447.50, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Wells Fargo’s backlog model for GEV’s HDGT bookings suggests that the firm is on track to sell its total projected capacity of 56 gigawatts (GW) from 2026 to 2028.
According to Wells Fargo, GEV has successfully secured orders and slot reservation agreements (SRA) amounting to 50 GW post the first quarter of 2025, bolstered by recent orders from DUK and NRG totaling approximately 5.5 GW. This brings GEV’s current backlog to 55.5 GW, with an estimated 43.3 GW booked for delivery between 2026 and 2028, after accounting for deliveries and future order estimates. The company’s strong market position is reflected in its impressive 177.9% return over the past year, with revenue reaching $35.7 billion in the last twelve months.Want deeper insights? InvestingPro subscribers have access to 15+ additional ProTips and comprehensive financial analysis for GEV.
Wells Fargo expects GEV to secure an additional 12.7 GW of orders by the end of the third quarter of 2025. This projection is based on management commentary and industry data, suggesting that nearly all slots for 2026 and 2027 have been booked, and over half of the capacity for 2028 is also reserved. The company’s current P/E ratio of 53.6x and EBITDA of $2.4 billion reflect its strong market position and growth potential.
The firm further anticipates that the remaining open slots for GEV’s HDGT products will likely command higher prices, given the recent price increases implemented by GEV in April 2025. Wells Fargo posits that if GEV can book the remaining 12.7 GW at these elevated prices in the upcoming five months, it could lead to an increase in the 2028 Power EBITDA margins beyond the estimated 16.9%. The firm concludes that for every one percent increase in the Power Segment margin from 2028 onwards, their price target would rise by approximately $8 per share.Discover GEV’s complete financial story with InvestingPro’s detailed Research Report, offering expert analysis and actionable insights for informed investment decisions.
In other recent news, GE Vernova’s first-quarter financial results have drawn attention, leading to adjustments in analyst ratings and price targets. JPMorgan raised its price target for GE Vernova to $430, maintaining an Overweight rating, following strong performance in the Power and Electrification segments. Similarly, Mizuho (NYSE:MFG) Securities increased its price target to $385, keeping an Outperform rating, noting the company’s solid gas turbine orders despite tariff challenges. At the annual stockholders’ meeting, GE Vernova’s shareholders elected directors and approved executive compensation, with Deloitte & Touche LLP ratified as the independent auditor for 2025.
In a significant business development, Prolec GE, a joint venture involving GE Vernova, announced a $140 million investment to double its transformer output in North Carolina, aiming to meet growing demand in North America. This expansion is expected to create over 330 jobs and has received support from state and local governments, along with a federal tax credit. JPMorgan analyst Mark Strouse highlighted the potential of GE Vernova’s Electrification segment, which could exceed financial guidance for fiscal year 2025, driven by a large HVDC pipeline and growing backlog.
These developments reflect GE Vernova’s strategic moves to enhance its market position and financial performance, supported by analyst endorsements and shareholder decisions.
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