GEV: Room For Multiple Expansion
Summary
- GE Vernova has doubled since its GE split, driven by electric energy demand and a turnaround plan to boost EBITDA margins from 2% to 13% by 2027.
- The company's turnaround involves better pricing and productivity, with EPS projected to grow over 20% annually due to margin improvements.
- GEV is generating free cash flow, and a capital return policy announcement at the December Investor Day could further boost share value.
- I rate GEV a BUY, with a YE25 price target of US$434, based on consistent high growth and potential for dividends or buybacks.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of GEV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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