GE Vernova's Power Surge: Why This Stock Is A Strong Buy

Michael Del Monte
4.81K Followers
(11min)

Summary

  • GE Vernova Inc. is experiencing robust backlog and order growth, driven by surging demand for gas turbines to power data centers and global energy needs.
  • Management is aggressively expanding gas turbine capacity beginning in e2h26 as demand for natural gas turbines expands in support of industrial and data center power needs.
  • Management is accelerating cost reductions in order to mitigate tariff risk, targeting $2-2.5B in free cash flow for FY25 and strong margin improvement.
  • Given the long growth runway, margin expansion, and capacity buildout, I reiterate my Strong Buy rating and $606/share target for GEV shares.

Gas turbine rotor at workshop

photosoup

GE Vernova Inc. (NYSE:GEV) is realizing exceptional growth in its backlog and orders as global investments in gas-fired power plants expand to support growing demand for data center capacity. Beginning in e2h26, GE Vernova will significantly expand its

This article was written by

4.81K Followers
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GEV, CVX, ORCL 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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