GE Vernova's (GEV) Q1 results were above consensus estimates on all metrics as strong gas and electrification demand backed backlog acceleration and higher prices, Morgan Stanley said in a note Thursday.

"Margin outperformance was driven by pricing, volume and productivity and as a result the company raised full-year guidance," the note said.

The 21 gigawatts of new gas contracts "met bullish investor expectations" and are near the company's Q4 record of 24 gigawatts, the note said, adding GE Vernova's orders are extending out and are fully booked further than expected.

Meanwhile, electrification orders for data centers are also higher than 2025 levels in just one quarter, while Prolec's backlog rose $1 billion, or 25%, since the Q3 2025 acquisition announcement, the investment firm said.

Morgan Stanley raised GE Vernova's price target to $1,250 from $960 and kept the company's overweight rating.

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