GE Vernova Inc (NYSE:GEV) delivered a strong quarterly beat, with higher-than-expected orders, according to Goldman Sachs analyst Joe Ritchie.
The GE Vernova Analyst: Ritchie reiterated a “Buy” rating and a price target of $715.
The GE Vernova Thesis: The company reported strong segment EBITDA of $977 million, which came in 11.5% higher than consensus, driven by strength in Electrification and Power results, Ritchie said in the note.
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Power orders grew by 50% year-on-year organically, while Electrification orders were up 102%, he added.
GE Vernova reiterated its 2025 revenue guidance range of $36 billion to $37 billion and an adjusted EBITDA margin of 8% to 9%, the analyst stated. While the guidance for Power remained unchanged, the company raised its Electrification projection to around 25% organic growth and 14%-15% margins, offset by a weaker outlook for Wind, he said.
Additionally, GEV also announced the acquisition of the remaining 50% of Prolec GE, a joint venture with Xignux, for $5.275 billion.
Ritchie’s team views the deal as a “positive surprise” due to the commercial synergies and accretive nature of the transaction.
GEV Price Action: Shares of GE Vernova had declined by 8.96% to $534.47 at the time of publication on Wednesday.
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