Headquartered in Cambridge, Massachusetts, GE Vernova Inc. (GEV) is a global energy company dedicated to advancing sustainable energy solutions, with a significant market presence and a focus on innovative technologies. With a market cap of $94 billion, GEV provides a comprehensive suite of products and services across power generation, renewable energy, and energy management, serving various clients, including utilities, governments, and industrial sectors.
Shares of GE Vernova have significantly outperformed the broader market over the past six months. GEV has gained 108% over this time frame, while the broader S&P 500 Index ($SPX) has gained 15.6%.
Zooming in further, GEV has underperformed the iShares Global Clean Energy ETF (ICLN) over the same time frame. The exchange-traded fund has declined about 10.6% over this period.
GE Vernova’s shares gained more than 6% the following day after its strong Q3 earnings report released on Oct. 23. The company topped earnings and revenue estimates for the quarter. The company projects full-year revenue between $34 billion to $35 billion. Additionally, on Oct. 21, GEV gained over 1% after Deutsche Bank initiated coverage with a “Buy” rating and a $354 price target.
For the current fiscal year, ending in December, analysts expect GEV’s EPS to decline 99.8% year over year to $2.53 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in two of the last three quarters while missing the forecast on another occasion.
Among the 22 analysts covering GEV stock, the consensus rating is a “Strong Buy,” an upgrade from the “Moderate Buy” rating two months back. The current rating is based on 16 “Strong Buys,” one “Moderate Buys” rating, and five “Holds.”
This configuration is more bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
On Nov. 4, Andrew Obin from Bank of America Securities maintained a ‘Buy’ rating on GE Vernova, with a price target of $320, implying that the stock trades at a premium.
Although the stock trades at a premium to the mean price target of 301.05, the Street-high price target of $374 suggests an upside potential of 9.6%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
