GE Vernova (GEV) might make tuck-in acquisitions for differentiated power management technologies and subsystem suppliers and use certain cash for share buybacks and a dividend, Oppenheimer said Tuesday.

"With GE Vernova shares up nearly 3x from its lows in 2024 on expectations for nearly 10% revenue CAGR for the next five years and significant operating leverage, we remain cautious that updated guidance may not reach lofty Street expectations," Oppenheimer analysts, including Colin Rusch, said in a note to clients.

The consensus calls for 5% annual revenue growth in wind business, but it could be challenging for GE Vernova given the cost headwinds in offshore category and interconnection problems in the offshore business. The company is also expected to have double-digit revenue growth in electrification, which had a $21.9 billion backlog exiting Q3.

Oppenheimer has a perform rating on the GE Vernova stock.

The company's shares were down 2.9% in recent trading.

Price: 328.10, Change: -9.44, Percent Change: -2.80