Coherent (COHR) and GE Vernova (GEV), two huge 2024 stock winners and AI-related plays, received bullish analyst initiations on Wednesday. Coherent stock leaped to a new high. GE Vernova stock popped in buy range.

Coherent Stock Initiation

Equity research firm Jefferies initiated coverage of Coherent stock with a buy rating and $135 price target, suggesting more room for shares to run after their triple-digit rally this year. Wall Street still underestimates the company's earnings power as new CEO Jim Anderson streamlines operations and implements a restructuring plan, Jefferies analyst George Notter told investors in a research note.

IBD profiled Coherent stock in a recent New America column. The company specializes in materials, optoelectronic components and laser systems. That includes optical circuit switches for AI data centers, as the growth of artificial intelligence creates intense demand for data processing.

On the stock market today, shares of Coherent jumped 5.9% to 112.81. COHR stock hit a record high, taking year-to-date gains to 159%.

Coherent stock is extended from a recent bounce off support at the 50-day/10-week moving average, which provided a 97.35 buy point.

Investors could use 111.66 as a buy point from a short consolidation, but the risks are higher from a short consolidation and more than 10% above the 50-day line.

GE Stock Initiation

Meanwhile, Wolfe Research started GE Vernova with an outperform rating and $403 price target.

The firm told investors it sees potential for growth and margin expansion well ahead of the Street view. GE Vernova is hosting its second investor day of the year on Dec. 10. Wolfe analysts said management could use the event to raise its forecast for 2028 sales growth. "There is no better proxy for accelerating demand for electricity," they said.

In the latest quarter, the General Electric energy spinoff saw strong power and electrification markets offset losses in wind energy. Analysts predict big GE Vernova earnings growth next year.

The company is benefiting, in part, from massive energy demand as big technology companies build out AI infrastructure.

Among other AI opportunities, GE Vernova offers AI and machine learning (ML) software to automate the inspection and monitoring of industrial assets. Analysts have also said that they see an opportunity in small nuclear reactors for GE Vernova. Bank of America analysts wrote in October that, with over 60 years of experience in nuclear power, GE Vernova has developed the BWRX-300 small modular reactor. The SMR has won its first contract and has a pipeline of 28 units in various stages of regulatory approval, according to The Fly.

In Wednesday's stock market, GE Vernova stock rose 2.6% to 340.60. Shares are in buy range from a recent rebound off the 21-day exponential moving average. Investors could use 346.67, marking the Dec. 2 high, as an alternative entry.

GEV stock has more than doubled since its April debut, surging 188%. That includes a 33.7% rally in the current quarter to date.

Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.

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