Where Will GE Vernova (GEV) Stock Be in 1 Year?

Core Insights - GE Vernova is positioned to benefit from the cyclical growth in the energy sector, with significant stock performance compared to its peers [4] - The company operates three main segments: Power, Electrification, and Wind, with Power being the largest contributor to orders [4][5] Segment Performance - The Electrification segment is experiencing growth despite its reliance on large, irregular projects [1] - The Power segment's growth is driven by increased demand for gas turbines and recurring service revenues from plant maintenance and upgrades [2][3] - The Wind segment faced challenges due to project delays and supply chain issues but showed growth in onshore wind services in the latest quarter [6] Future Projections - GE Vernova anticipates organic revenue growth of 6%-7% for the Power segment in 2025, with expectations of 16%-18% growth in 2026 and high-teens CAGR through 2028 [7] - The Electrification segment is projected to trend toward 25% growth in 2025 and approximately 20% in 2026, also maintaining high-teens CAGR through 2028 [7] - The Wind segment is expected to see a decline in organic revenue by high single digits in 2025, with plans to right-size the business and improve margins [9] Financial Outlook - Total revenue is expected to increase from $36 billion in 2025 to $52 billion by 2028, with adjusted EBITDA margins expanding from 8% to 20% [10] - Free cash flow is projected to rise from $3.5 billion to $4.0 billion in 2025, with a cumulative total exceeding $22 billion from 2025 to 2028 [10] Valuation and Stock Performance - GE Vernova's enterprise value is $166.1 billion, trading at 31 times its projected adjusted EBITDA for 2026, which may be justified by strong growth rates [12] - If the company meets analysts' expectations for 2027, its stock could rise by more than 50% over the next 12 months, outperforming the S&P 500 [13]