GE Vernova (GEV) Jumps Back Into Favor as RBC Turns More Bullish

Core Viewpoint - GE Vernova Inc. (NYSE:GEV) is being closely monitored by analysts as a promising AI stock, with RBC Capital upgrading its rating from Sector Perform to Outperform and setting a price target of $761.00, reflecting confidence in the company's growth and margin potential [1][2]. Group 1: Analyst Upgrades and Price Target - RBC Capital has revised its price target for GEV from $630 to $761, based on a 13x multiple of the 2030E EBITDA, indicating a positive outlook for the company's valuation [3]. - The upgrade follows a previous downgrade by RBC, which underestimated GEV's growth and margin opportunities, but the firm now recognizes the company's strong performance and updated outlook [2][3]. Group 2: Growth and Margin Expansion - GEV's growth trajectory is expected to enhance margin expansion through various channels, including improved equipment margins and productivity enhancements in the short term [3]. - Long-term benefits are anticipated from a growing services backlog and the expansion of the electrification product portfolio, which will further support the company's growth [3]. Group 3: Market Position and AI Demand - GE Vernova Inc. is positioned as a global energy company benefiting from the increasing demand for energy to support artificial intelligence technologies, making it a notable player in the AI stock market [3].