As GE Vernova (GEV) began trading on the New York Stock Exchange under the ticker symbol GEV on Tuesday, analysts at JPMorgan and RBC Capital began covering the stock.
RBC started the stock at “outperform” with a target price of $160. The firm told investors in a note that it has “opportunities for growth.”
“GEV participates across the entire electrification value chain, giving the company a unique perspective and allowing it to be the first to respond to the growing complexity and demand of the electrical grid,” RBC said.
“We see a path to 10% EBITDA margin by ’26, a year ahead of schedule, and upside to long-term growth targets with execution and increased electrification demand.”
Meanwhile, JPMorgan analysts started the stock at neutral with a target price of $141 per share.
The bank said GEV is a “core long-term holding for investors looking to take advantage of the electrification trend, with scarcity value driven by the company’s diversification and relative exposure to the US.”
Analysts also believe that improvements in profitability are already underway, driven by new management. However, with shares trading near JPMorgan’s end-2024 price target, they “believe investors can expect a pullback before potentially adding to positions more aggressively.”