Shares of GE Vernova (GEV) surged on Tuesday after Bank of America (BofA) analysts raised their price target for the company’s stock ahead of its fourth-quarter earnings report next week. The analysts lifted their price target to $415, up from $380, surpassing the analyst consensus compiled by Visible Alpha, which stood at $386. They also maintained a “buy” rating on the stock, citing potential benefits for GE Vernova from rising gas turbine prices.
GE Vernova’s stock climbed 4.2% on Tuesday, closing at $382.26, and has experienced a notable 16% increase since the start of the year. The price target revision comes as BofA analysts noted that gas turbine prices have been rising steadily, driven by factors such as energy costs, market transactions, and data from government cost studies and the producer price index.
While the precise pricing for gas turbines is difficult to estimate due to variations in customer contracts and bidding processes, the analysts suggested that prices have increased at a high-single-digit pace since 2019 and are expected to continue climbing. This trend could be advantageous for GE Vernova, which has a significant presence in the gas turbine market.
Beyond gas turbines, GE Vernova also has market opportunities in steam turbines, heat recovery steam generators, and other equipment. These areas, combined with the rising prices for gas turbines, position the company well for future growth.
GE Vernova is scheduled to report its fourth-quarter earnings on January 22 before the market opens, which will provide further insight into the company’s performance and prospects.
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