GEV Stock Forecast & Price Target

GE Vernova demonstrates strong growth potential in its Power segment, with a notable revenue increase of 15% year-on-year, amounting to $4.84 billion, and a remarkable 50% rise in orders on an organic basis. The overall total orders surged approximately 55% year-on-year to $14.6 billion, driven primarily by robust equipment demand in both the Power and Electrification segments. Furthermore, the company's EBITDA forecast for 2030 has been revised upward by around $1.6 billion, reaching approximately $13.8 billion, reflecting expectations of substantial service-related revenue growth as heavy-duty turbine volumes rise.

GE Vernova is facing significant challenges within its wind segment, with projected EBITDA losses increasing to approximately $400 million, far exceeding previous estimates, and organic revenue expected to decline in the high single-digit percentage range year-over-year. Additionally, the expiration of ITC/PTC credits for wind energy by the end of 2027 could adversely impact long-term demand, coupled with potential policy changes that may detrimentally affect the company’s gas power segment, which currently supports its margins and free cash flow generation. These factors, along with risks such as supply chain disruptions, delays in project execution, and operational inefficiencies, contribute to a pessimistic outlook for the company's financial performance.