GE Vernova (GEV) PT Raised to $324 at Goldman Sachs

Goldman Sachs analyst Joe Ritchie raised the price target on GE Vernova (NYSE: GEV) to $324.00 (from $308.00) while maintaining a Buy rating.

The analyst comments "Bottom line: Wind noise belies burgeoning Power and Electrification trends. GEV posted segment EBITDA of $383mn (+8% vs. our expectations) driven by stronger Power ($499mn vs GS: $395mn) and Electrification ($201mn vs GS: $187mn) performance. Wind was weaker than we expected (-$317mn vs GS: -$228mn) and included a $300mn gain from the Offshore Wind project that canceled last year. Going forward, we are buoyed by the robust orders in Power (+34% organic, 5.1 GW, service orders +29%) and Electrification (+17% organic, equipment backlog: $18.6bn), offsetting a large decline in Wind (-19% organic). In our view, the strength in the core businesses (Power, Electrification) more than offsets the noise in Offshore Wind, which we don't expect to be a contributor to (or detractor from) earnings beyond 2026. In the near-term, we expect the focus to be the December 10th investor day, where we expect the company to provide new segment level targets for 2028. Post this result, we are tweaking our EBITDA estimates (GS 2025/2026 EBITDA: $3,362mn/$4,582mn) and remain Buy rated given GEV's unique position in helping to electrify/decarbonize our future. We raise our 12-month PT to $324, which implies a FY26E FCF yield of ~3.5%."

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