GE Vernova Spins Off in 2024, Stock Rises 70%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Successful Spin-off: GE Vernova was spun off from General Electric in 2024 and has rapidly grown as a standalone energy company, with its stock rising 70% over the past 12 months, indicating strong performance and future growth potential in the energy market.
- Impressive Order Growth: In Q3 2024, GE Vernova's Power segment saw a 34% year-over-year increase in orders, driven by rising demand for gas turbines, with expectations of 6%-7% organic revenue growth in 2025, further solidifying its market position.
- Electrification Business Expansion: The Electrification segment achieved a remarkable 122% order growth in Q4 2024, reflecting strong demand for grid upgrades despite volatility, with an anticipated organic revenue growth of approximately 25% in 2025, driving overall business development.
- Wind Business Adjustment: Although the Wind segment faces order declines and supply chain issues, GE Vernova plans to optimize spending and project selection, expecting to improve its adjusted EBITDA margin from negative to 6% by 2028, laying the groundwork for future growth.
Analyst Views on GEV
Wall Street analysts forecast GEV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GEV is 676.76 USD with a low forecast of 475.00 USD and a high forecast of 758.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
12 Buy
6 Hold
1 Sell
Moderate Buy
Current: 652.090
Low
475.00
Averages
676.76
High
758.00
Current: 652.090
Low
475.00
Averages
676.76
High
758.00
About GEV
GE Vernova Inc. is a purpose-built global energy company that includes Power, Wind, and Electrification segments and is supported by its accelerator businesses. It designs, manufactures, delivers, and services technologies to create a sustainable electric power system, enabling electrification and decarbonization. Power segment includes the design, manufacture, and servicing of gas, nuclear, hydro, and steam technologies, providing a critical foundation of dispatchable, flexible, stable, and reliable power. Wind segment includes its wind generation technologies, inclusive of onshore and offshore wind turbines and blades. Electrification segment includes grid solutions, power conversion and storage, and electrification software technologies required for the transmission, distribution, conversion, storage, and orchestration of electricity from point of generation to point of consumption. Its accelerator business includes advanced research, consulting services and financial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
