Shares of GE Vernova (GEV) saw a notable uptick on Tuesday after analysts at Bank of America (BofA) raised their price target for the company, ahead of its upcoming fourth-quarter earnings report.
BofA analysts increased their price target for GE Vernova from $380 to $415, surpassing the analyst consensus estimate of $386, as compiled by Visible Alpha. The analysts also maintained a “buy” rating on the stock, indicating that the company stands to benefit from rising prices in the gas turbine market. Following the announcement, GE Vernova’s stock price jumped 4.2%, closing at $382.26, marking a 16% gain since the beginning of the year.
While BofA noted that it can only estimate gas turbine prices due to the variability in energy costs and the lack of publicly available contract bidding data, the analysts pointed to government cost studies, select market transactions, and producer price index data. These sources suggest that gas turbine prices have risen at a high-single-digit pace since 2019 and could continue to increase, providing a potential boost for GE Vernova.
In addition to gas turbines, GE Vernova has opportunities in other equipment markets, including steam turbines and heat recovery steam generators, according to the analysts.
The company is scheduled to release its fourth-quarter earnings report on January 22 before the market opens.
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