Melius Bullish on GE Vernova (GEV), Sees Strong Upside as AI Boosts Energy Needs

Core Insights - GE Vernova Inc. (NYSE:GEV) has been upgraded to "Buy" from Neutral by Melius analyst Rob Wertheimer, with a price target of $740, indicating significant upside potential based on future estimates [1] - The stock has increased 5 times since its spin-off, reflecting strong market appreciation for its AI-driven growth prospects and the increasing demand for energy [2] - The strengthening artificial intelligence sector is identified as a key driver for GE Vernova's growth, with ongoing improvements in power demand further supporting this outlook [2] Company Performance - The stock's performance has been notable, with a 5x increase since the spin-off, suggesting robust investor confidence and market interest [2] - Pricing power is highlighted as a critical factor, with challenges in internalizing price increases following the current demand shock [2] Market Context - The global energy market is experiencing a durable expansion in power demand, which is expected to positively impact GE Vernova's future performance [1][2] - The company is positioned as a significant player in the AI sector, driven by the energy needs of artificial intelligence technologies [2]