Street Calls of the Week
CAMBRIDGE, Mass. - GE Vernova (NYSE:GEV), currently trading near its 52-week high at $555.04 and valued at over $151 billion, plans to create 250 new jobs over the next two years at its Charleroi, Pennsylvania factory to manufacture high voltage switchgear products critical for electrical grid operations. According to InvestingPro analysis, the company appears overvalued at current levels, though it maintains strong financial health metrics.
The expansion is part of a broader initiative to invest up to $100 million in Pennsylvania, creating approximately 700 new jobs across multiple factories in the state, according to a company press release.
This investment builds upon GE Vernova’s previously announced $600 million multi-year investment from January, which was expected to create 1,500 new jobs across U.S. factories. The company has now announced plans for a total of 1,750 new U.S. jobs and $680 million in investments since the beginning of the year.
"These new jobs and investment reflect our ongoing commitment to not only building critical grid infrastructure with American workers, but reindustrializing Pennsylvania’s proud manufacturing legacy," said Scott Strazik, CEO of GE Vernova.
The company also secured an order to provide seven 7HA.02 natural gas turbines to the Homer City Energy Campus in Pennsylvania. The facility, formerly the largest coal plant in the state, is being converted to provide up to 4.4GW of electricity to power a natural gas-powered data center campus designed for artificial intelligence and high-performance computing needs. The project is expected to be completed in 2027.
The Pennsylvania investments are part of GE Vernova’s larger $9 billion global capital expenditure and R&D investment plan through 2028, announced in December 2024.
GE Vernova currently employs more than 18,000 workers across 50 states and operates 18 U.S. manufacturing facilities. The company’s technology helps produce more than half of the power in the United States.
In other recent news, GE Vernova has been the focus of multiple analyst updates and strategic developments. Seaport Global Securities has initiated coverage on GE Vernova with a Buy rating, projecting significant growth in revenue, EBITDA, and EPS from 2025 to 2027. BMO Capital also raised its price target for the company to $590, maintaining an Outperform rating, and highlighted the potential for long-term earnings growth through service agreements in the Gas Power business. UBS joined the positive sentiment with a Buy rating and a $614 price target, citing the company’s strong market share in gas turbines and projected earnings growth driven by AI and data center electricity demand.
Furthermore, GE Vernova is exploring a potential sale of its Proficy industrial software business, which could be valued at up to $1 billion. The company is working with financial advisers and has reached out to potential buyers, although the process remains in preliminary stages. BofA Securities has also increased its price target for GE Vernova to $550, reflecting higher revenue estimates for the Power segment and an expected compound annual growth rate of 25% from 2024 to 2028. These developments indicate a positive outlook for GE Vernova, with analysts expecting robust growth in the coming years.
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