GE Vernova Gains Investor Confidence With Strong Revenue Outlook And Path To Higher Margins, Say Analysts

GE Vernova Inc. (NYSE:GEV) shares are trading higher after several analysts raised the price targets on the stock following third-quarter earnings reported on Wednesday.

The company reported revenue growth of 8% year-over-year to $8.913 billion and +10% YoY organically, beating the consensus of $8.783 billion.

Loss per share for the quarter stood at $0.35, compared to a $0.62 loss a year ago, missing the EPS consensus of $0.32. 

GE Vernova expects FY24 revenue to trend towards the higher end of $34 billion, $35 billion versus $34.93 billion estimate.

Morgan Stanley analyst Andrew S Percoco raised the price target to $301 from $256 with an Overweight rating.

The analyst writes that he sees a pathway to 20% EBITDA margins for GEV later this decade.

Currently, Percoco anticipates gas power margins to peak in the high teens (up from mid-teens) depending on pricing and disclosures at GEV’s upcoming investor day.

The analyst anticipates GEV to provide an adjusted EBITDA margin target of at least 13%-15% for 2028 at ...