BofA Securities Sees GE Vernova’s Power Demand Fueling Another Strong Quarter
BofA Securities remains bullish on GE Vernova Inc. (NYSE: GEV ) as strong demand for power-generation and grid equipment continues to support the company’s growth outlook. Analyst Andrew Obin reiterated a Buy rating on the stock with a $1,310 price forecast. • GE Vernova stock is showing notable weakness. What’s pressuring GEV stock? Obin expects strong second-quarter order growth, driven by demand for gas-power and grid equipment. BofA Securities forecasts total orders of $19.6 billion, up 59% year over year and slightly above the $19.4 billion consensus estimate. The projection includes $11.1 billion in Power orders, $7 billion in Electrification orders, and $1.6 billion in Wind orders. Power: Gas Demand Drives Orders BofA Securities expects GE Vernova to secure 13 gigawatts of gas-power equipment contracts during the quarter. The projection includes 9 gigawatts of firm orders...
BofA Securities remains bullish on GE Vernova Inc. (NYSE: GEV ) as strong demand for power-generation and grid equipment continues to support the company’s growth outlook. Analyst Andrew Obin reiterated a Buy rating on the stock with a $1,310 price forecast. • GE Vernova stock is showing notable weakness.
What’s pressuring GEV stock? Obin expects strong second-quarter order growth, driven by demand for gas-power and grid equipment. 4 billion consensus estimate. 6 billion in Wind orders.
Power: Gas Demand Drives Orders BofA Securities expects GE Vernova to secure 13 gigawatts of gas-power equipment contracts during the quarter. The projection includes 9 gigawatts of firm orders and 4 gigawatts of net slot reservation agreements. 9%. 1 billion, supported by demand for gas-turbine equipment and services.
Electrification: Key Upside Driver Obin views Electrification as the segment most likely to outperform expectations. 47 billion, representing 60% reported growth. The estimate includes a 25-percentage-point contribution from GE Vernova’s acquisition of the remaining interest in the Prolec joint venture. The firm projects an 18% adjusted EBITDA margin and believes management’s guidance for modest sequential margin expansion may prove conservative.
S. onshore wind market. The firm forecasts an adjusted EBITDA loss of $280 million for the segment. 21 billion.
35 billion. BofA Securities bases its $1,310 price forecast on 40 times estimated 2027 adjusted EBITDA. Obin believes the premium valuation reflects GE Vernova’s above-peer earnings growth and margin-expansion outlook. Risks include changes to wind incentives, execution challenges, weaker gas turbine demand, and contract cost overruns.
Stromnetz Berlin: GE Vernova Wins Grid Contracts Separately, GE Vernova said Thursday that it secured two contracts from Stromnetz Berlin GmbH to design, deliver and install 110-kilovolt gas-insulated substations in Wittenau and Neukölln. The substations will use GE Vernova’s SF₆-free g³ technology, which reduces the insulating medium’s global warming potential by about 99% compared with SF₆. The projects will modernize sections of Berlin’s high-voltage network serving homes, businesses and public infrastructure. The contracts expand the company’s involvement in European grid modernization and support demand for its Electrification equipment.
80 at the time of publication on Thursday, according to Pro data. Read Also: GE Aerospace Says Supply, Not Demand, Is Now Its Biggest Growth Challenge Image by Saskia B via Shutterstock