Analysts See Big Gains Ahead For GE Vernova, Raising Price Target To $620

Core Viewpoint - BofA Securities analyst Andrew Obin maintains a Buy rating on GE Vernova and raises the price target from $550 to $620, driven by strong order forecasts and growth in key segments [1][2]. Group 1: Financial Forecasts - GE Vernova is expected to report $11.8 billion in orders for Q2 2025, exceeding the consensus of $11.1 billion by 6%, primarily due to Gas Power segment contributions [1][2]. - The anticipated adjusted EBITDA for Q2 2025 is $0.7 billion, aligning with Wall Street expectations [2]. - The price target increase reflects a 6% rise in 2027 EBITDA estimates and an 11% rise in EPS estimates [2]. Group 2: Market Dynamics - The forecast includes significant orders for 6GW of Gas Power turbines from markets such as Saudi Arabia, India, and the U.S. [2]. - GE Vernova's shares have increased by 67% year-to-date, significantly outperforming the S&P 500 [2]. Group 3: Cost and Regulatory Factors - Decreasing tariff costs, particularly on Chinese goods, are expected to benefit GE Vernova, with the tariff impact largely offset in 2025 [3]. - The One Big Beautiful Bill Act may lead to increased U.S. onshore wind orders in late 2025 and early 2026, but could result in lower wind deliveries in 2027 and beyond [4]. Group 4: Analyst Updates - Multiple analysts have raised their price targets for GE Vernova, with targets ranging from $544 to $702, reflecting a generally positive outlook on the company's performance [7].