GE Vernova's Gas Power Services Underappreciated & Poised For Growth: Analyst

Lekha Gupta

September 17, 2024

GE Vernova Inc. (NYSE:GEV) shares are trading higher after BofA Securities analyst Andrew Obin upgraded the stock from Neutral to Buy and raised its price target from $200 to $300.

The analyst writes that while rising grid-related spending benefits the Electrification segment, they believe the potential of Gas Power Services (29% of revenue) is underappreciated by investors.

Notably, the analyst writes that electricity generation for U.S. combined cycle plants has grown at a 5.1% CAGR from 2014 to 2024, while simple cycle gas turbines have grown at an 11.6% CAGR.

Hence, an increase in utilization is already boosting growth in GEV’s transactional services, which are rising at an approximately 8% CAGR from 2020 to 2023.

Also Read: Power And Electrification Propel GE Vernova’s Q2 Performance, Wind Orders Lag, Guidance Raised

Obin expects GEV to outperform and exceed expectations in the coming quarters consistently. Consequently, the analyst raised the 2025/2026 estimates due to anticipated faster earnings growth in Gas Power Services.

Obin raised the 2025 adjusted EBITDA estimate by $0.5 billion to $3.6 billion and the 2026 estimate by $1.1 billion to $5.4 billion. These estimates are 16% and 27% higher than the current consensus, respectively.

Investors can gain exposure to the stock via Invesco S&P Spin-Off ETF (NYSE:CSD) and Fidelity Clean Energy ETF (BATS:FRNW).

Price Action: GEV shares are up 3.78% at $238.63 at the last check Tuesday.

Read Next:

Jim Cramer: Veralto Is A ‘Well-Run’ Company, Likes This Utilities Stock

Recommended

A 10,000% Dividend?!? - Ad

The No. 1 AI Stock of 2024 (Not Nvidia) - Ad

Silicon Valley Billionaires Are Quietly Buying Into What We Call the "Imperium" Boom - Ad

A famous election forecaster has made their final prediction on who will win the 2024 presidential election.

Harris, Trump Films To Hit Theaters Weeks Before 2024 Election: One Candidate Tried To Block Movie From Release

Movies about Kamala Harris and Donald Trump hit theaters in October. Find out the differences between the movie and why one candidate wants a ban.

2024 Oil Boom

2024 Oil Boom - Ad

There is a much better way to profit from oil in 2024. It's NOT oil stocks, futures, or anything you've likely heard about. In fact, one man used it build a small $1,000 investment into a $100,000 income stream over fifty years.

Americans Split On Election Result Acceptance Between Harris And Trump, Here Is The Candidate They Think More Likely To Accept Voters' Verdict

A survey conducted by ABC News/Ipsos has shed light on the American public's confidence in the acceptance of the upcoming November presidential election results by Vice President Kamala Harris and former President Donald Trump.

Huge payout expected for a rare coin bought by Ohio farm family and hidden for decades

TOLEDO, Ohio (AP) -- Three sisters from Ohio who inherited a dime kept in a bank vault for more than 40 years knew it had some value. But they had no idea just how much until just a few years ago.

America Can't Afford a Harris Presidency

America Can't Afford a Harris Presidency - Ad

New research from Jim Rickards - former advisor to the CIA - reveals shocking predictions about an "Election Meltdown" coming this November. Jim's showing all American patriots why an "Election Meltdown" could crash stocks by 50%, lead to the final demise of the dollar, even cause violent riots in the streets.

Scaramucci: Trump Wins Billionaires' Support Despite Coming Off As 'Raging Lunatic,' Harris Backs A 'Ridiculously Stupid Idea'

Trump is someone who can't keep to his messaging and his rival Kamala Harris can gain an upper hand by going on offensive, says Scaramucci.

Trump Misunderstands Taiwan's Role In Chip Industry, Says Economy Minister: 'The President Has A Lot On His Plate'

Trump had earlier suggested that Taiwan should compensate the U.S. for defense, accusing the island nation of taking American semiconductor business.

Man Who Predicted Trump Win Issues Shocking New Election Prediction

Man Who Predicted Trump Win Issues Shocking New Election Prediction - Ad

In 2016, surveys were giving Hillary Clinton more than 99% chance of winning right up until election night. But right before the election... Former advisor to the CIA, Jim Rickards predicted Trump would win. You won't believe what he's predicting now. And it could have huge implications for the financial markets.

Trump's Attorney General William Barr Accuses Biden-Harris Admin Of Politicizing Cannabis Legalization, 'Ignoring Legal Standards, Scientific Evidence'

Casting aspersions on cannabis reform, Barr did not mention Donald Trump who recently said he supported weed reform in Florida.

Nvidia Set To Reach $10 Trillion Valuation As Blackwell Expected To Propel Chip Maker With 'Fireworks Again' In 2025, Analyst Predicts

NVIDIA Corp is projected to surge to a $10 trillion valuation, according to Beth Kindig, lead tech analyst at I/O Fund. Kindig highlighted the potential of Nvidia's next-generation artificial intelligence chip, Blackwell.

Why We Just Sold Half of Our Stocks

Why We Just Sold Half of Our Stocks - Ad

We've already sold all or part of 52 different stocks this year - more than any other period in our firms' history. That's because there are five cracks forming below this market that threaten us with a widespread collapse. We could see the market tumble by 50% and unemployment will triple.

Trump courts conservative male influencers to try to reach younger men

WASHINGTON (AP) — At first glance, there's little that a 78-year-old former president and a 23-year-old internet personality might have in common.

Trump's Campaign Slapped With Lawsuit Threat After Jack White Calls Them 'Fascists'- 'You Should Lose Every Military Family's Vote Immediately!'

Jack White of the White Stripes has condemned Donald Trump's campaign as "fascists" and threatened legal action after an aide used a clip of the band's 2003 hit "Seven Nation Army" in a pro-Trump social media post.

4 Cryptos Set to Outperform Bitcoin in 2024

4 Cryptos Set to Outperform Bitcoin in 2024 - Ad

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on June 24th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

WHO and Africa CDC launch a response plan to the mpox outbreak

DAKAR, Senegal (AP) — The Africa Center for Disease Control and Prevention and the World Health Organization launched on Friday a continent-wide response plan to the outbreak of mpox, three weeks after WHO declared outbreaks in 12 African countries a .

Behind the nonprofit helping a diverse new generation of culinary professionals heat up New York

NEW YORK (AP) — A side of beef bigger than a classroom desktop sat before high school students huddled around a kitchen on New York's Lower East Side. “Anyone wanna jump in?” asked the butcher teaching the Tuesday afternoon class. One student dared, grabbing a sawblade about as long as his arm and sweating to successfully separate the short rib from the rib eye.

Seven Unknown AI Stocks That Could Dominate the Next Six Years

Seven Unknown AI Stocks That Could Dominate the Next Six Years - Ad

The original "Magnificent Seven" stocks generated 16,800% over the last 20 years. But now a new set of AI stocks is set to take over. Alex Green dubs them "The Next Magnificent Seven." And he's arguing that just $1,000 in each could turn into more than $1 million in less than six years.

Tesla CEO Elon Musk Wants To Bring Back Dogecoin As A Payment Option To Buy Company's Merchandise

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said on Friday that he would like to have the option of paying with meme cryptocurrency Dogecoin (CRYPTO: DOGE) reinstated for the company’s merchandise.

Johnson & Johnson-Spin Off Kenvue Wins Lawsuit Over Pain Killer Tylenol 'Rapid Release' Gelcaps

Kenvue defends against a consumer lawsuit alleging that its Tylenol "Rapid Release" gelcaps did not relieve pain faster than regular tablets. A federal judge ruled the claims were preempted by FDA regulations.

Imminent FDA Decision Could End Obesity in America...

Imminent FDA Decision Could End Obesity in America... - Ad

...and spark a 224,000% sales surge for one tiny micro-cap stock. Channelnomics says it "Could have a greater impact on the world than artificial intelligence." BMO Capital calls it "A goldmine for investors." The Wall Street Journal says it's "A Gold rush."

China's Chipmaking Investments Top US, Taiwan, South Korea Combined: What It Means For Nvidia, ASML

China invests $25 billion in chipmaking equipment, surpassing spending by South Korea, Taiwan, and the U.S. This could impact top chipmakers and suppliers like NVIDIA and ASML.

Hewlett Packard won't drop its UK claim against tech mogul Mike Lynch, who died when his yacht sank

LONDON (AP) — Hewlett Packard Enterprise said Monday it won't drop its U.K. claim for damages against the estate of British , who was killed when his superyacht sank last month.

Analysts Are Projecting "Safe-Haven" Stock Will Nearly Double

Analysts Are Projecting "Safe-Haven" Stock Will Nearly Double - Ad

Already up nearly 50% in the last 6 months this gold company has an analyst target nearly twice its current price. With 40+ investment banks and funds already invested it's no wonder this $1.3B company (trading under $2) is grabbing investor attention.

Kamala Harris Vows Tougher Border Policy, Supports Israel's Armament In First Major Interview As Presidential Nominee

The interview marked Harris's first media appearance since accepting the Democratic nomination for president.

NASA Revamps SpaceX's Crew 9 Lineup To Make Room For Astronauts Stranded At ISS Due To Boeing's Starliner Issues

Only two astronauts will launch on NASA's upcoming SpaceX Crew-9 mission instead of four so as to accommodate the two astronauts who arrived at the station aboard Boeing's Starliner spacecraft, the space agency said on Friday.

Exposed: Democrats' Secret Plan to Keep Trump Out of the White House

Exposed: Democrats' Secret Plan to Keep Trump Out of the White House - Ad

Former advisor to the CIA, the Pentagon and the White House Jim Rickards just released this shocking new video exposing Democrats' secret plan to keep Trump out of the White House... Even if he wins the election. See the details and learn how to prepare... Because this could trigger the biggest constitutional crisis in our nation's history.

Video game performers reach agreement with 80 video games on AI terms

LOS ANGELES (AP) — After striking for over a month, have reached agreements with 80 games that have signed interim or tiered budget agreements with the performers' union and accepted the artificial intelligence provisions they have been seeking.

Turkey seeks to join the BRICS bloc of emerging economies, a Kremlin official says

MOSCOW (AP) — NATO member Turkey has applied for membership in the , a senior Kremlin official said Wednesday, as Russia and China seek to counter the West's global influence.

This Is How the AI Bull Market Ends

This Is How the AI Bull Market Ends - Ad

The AI bull market as we know it right now will end...And all the big popular AI stocks investors are piling into right now will NOT be the where the biggest returns will come from. And for investors who don't know how the market is changing and where it's going...They could end up left behind.

Kentucky's Massive Cannabis Licensing Response: 5,000 Applications Filed Before Deadline

Nearly 5,000 medical cannabis license applications were filed in Kentucky by the August deadline, showing immense interest.

More Hong Kongers tune out the news as they adapt to Beijing's tightening grip

HONG KONG (AP) — Hannah Wong cried when the Hong Kong government effectively forced and out of business three years ago. Among the last news outlets in the city willing to criticize the government openly, many saw their end as a sign that the old Hong Kong was gone for good.

Do Not Day Trade (Do This Instead)

Do Not Day Trade (Do This Instead) - Ad

Forget day trading (especially in markets like these). Trade OVERNIGHT instead! I've uncovered a shocking way to take 100% certain events (mandated by the U.S. Government)...And target OVERNIGHT payouts like: 253%... 327%... Even 383%! Enough to potentially hand you profits of $25,300... $32,700... heck even $38,300!

Trump Says Immigrants Are 'Eating The Dogs' In Ohio During Debate With Kamala Harris, Gets Called Out

Former President Donald Trump reiterated allegations about Haitian immigrants in Ohio, during a televised debate on Tuesday.

Harris Vs. Trump: Vice President On Top By Three Points, How Her Lead Compares To The 2020 Election At This Point In Race

A new 2024 election poll of likely voters shows a three-point lead for Kamala Harris. There is good and bad news from the poll for the vice president.

Buffett's Big A.I. Secret (Handle With Care)

Buffett's Big A.I. Secret (Handle With Care) - Ad

A.I. is the talk of the town...But here's what they're NOT telling you. Former investment banking V.P. Ross Givens is letting the cat out of the bag. He's leaking a revolutionary new development, which changes everything. It will kick off A.I.'s massive second wave.

Funeral business' slow but inevitable march attracts investors to these stocks

NEW YORK (AP) — Death and taxes, the saying goes, are the only certainties in life. If so, funeral companies like Houston's Service Corporation International might look like a sure bet to investors.

Wall Street Could Head Higher As Traders Look Forward To Retail Sales Data Ahead Of Fed Decision, Tech Stocks On The Mend: Strategist Flags This As Best-Case Scenario For Market This Week

U.S. stocks are priming for a positive start on Tuesday ahead of the release of the key August retail sales report. Traders could throng the tech space as they seek to take advantage of the recent pullback.

Man Who Called Nvidia at $1.10 Says Buy This Now...

Man Who Called Nvidia at $1.10 Says Buy This Now... - Ad

In 2004, a man predicted Nvidia's rise. Now, he says a new company, which IPO'd in 2023, could soar like Nvidia. It signed a major deal with Apple for its AI tech in iPhones and iMacs. Could it be the next trillion-dollar company? See why he believes it's among "The Next Magnificent Seven."

Executives Buying Core Scientific And 2 Other Stocks

When insiders purchase shares, it indicates their confidence in the company's prospects or that they view the stock as a bargain.

Trending Now