Jefferies reiterates GE Vernova stock rating on gas turbine demand

Jefferies has reaffirmed its Buy rating on GE Vernova Inc. (NYSE:GEV) shares, maintaining a price target of $1,185. Shares are currently trading at $925, roughly 23% below their 52-week high of $1,196. The firm's revised opinion stems from management comments at a recent conference that boosted shares by 5%. GE Vernova's stock has shown impressive performance, with a 42% gain year-to-date and a 51% increase over the past year.

The company has secured multiple gas turbine slots for 2032, with management considering its target of 20 gigawatts in contracts for the second half of 2026 to be conservative. Analysts note that the conversion of slots to orders has ramped up since the second quarter, and they anticipate uneven electrification results in the second half of the year, potentially adding 4 percentage points to the backlog.

While some analysts believe the stock is overvalued relative to its Fair Value, they still expect continued sales growth. Investors interested in a more detailed analysis can refer to GEV's comprehensive Pro Research Report. Recently, GE Vernova has attracted attention from various analysts, with Bernstein SocGen Group maintaining an Outperform rating and citing the company's strong position in electrification and decarbonization trends, along with a substantial $40 billion backlog in electrification equipment.

Conversely, GLJ Research has initiated coverage with a Sell rating, citing cycle concerns. Additionally, Elon Musk's announcement about SpaceX and Tesla expanding their solar production capacity caused a decline in GE Vernova shares, despite broader market discussions suggesting a slowdown in AI development is unlikely to impact companies like GE Vernova significantly.