On Wednesday, GE Vernova (GEV.US) led gains among S&P 500 components, reaching an all-time intraday high of $731 before closing up 15.62% at $723. The surge followed the company's announcement of a doubled dividend, increased share buyback authorization, 2026 financial guidance, and raised earnings outlook, signaling robust demand for new natural gas power generation in coming years. Wall Street analysts responded with bullish upgrades.
GE Vernova has benefited from soaring U.S. power demand, driven by data centers, AI, and broader electrification trends. Since its spin-off from GE Aerospace in early 2024, the stock has more than doubled this year. The company now projects $52 billion in revenue by 2028, with low double-digit CAGR growth, up from a prior $45 billion forecast (high single-digit growth), while raising its adjusted EBITDA margin target from 14% to 20%. CEO Scott Strazik highlighted GE Vernova’s strategic position to capitalize on rising power needs, expecting 80 GW in combined-cycle gas turbine contracts by year-end.
Recent concerns over an AI bubble and its energy sector impact have weighed on tech and utility stocks. Strazik dismissed these worries, stating no bubble exists in either industry. He noted Q4 will mark its highest sales quarter to hyperscale data center providers, with further growth anticipated in 2025.
JPMorgan analyst Mark Strouse raised GE Vernova’s price target to $1,000—the highest on Wall Street—citing "significantly better-than-expected" power orders and improved pricing per deal. Oppenheimer upgraded the stock to "Outperform" ($855 target), with Colin Rusch citing potential as a "key tech partner" for AI hyperscalers amid grid constraints. UBS lifted its target to $835 ("Buy"), praising "optimistic" goals and execution, while William Blair reiterated "Outperform," calling long-term guidance conservative.
Wolfe Research ("Market Perform") acknowledged raised 2026–2028 targets but deemed them "more realistic," while RBC upgraded to "Outperform" on stronger growth/margin prospects. BMO raised its target to $780, highlighting a $10.4 billion 2028 EBITDA outlook. Jefferies noted "exceptional" margin, EBITDA, and free cash flow beats, with 2026 FCF projections "uniquely constructive" and electrification margins above 20%.
These updates reflect GE Vernova’s robust financials and strategic growth, as emphasized in recent investor briefings.