Morgan Stanley Raises GE Vernova Stock Target Amid Record Orders and Guidance Hike
GE Vernova reported record orders, raised full-year revenue and cash flow guidance, yet its stock fell by nearly 6.4% on July 22 due to a surprise earnings miss of about 22%. The drop was attributed in part to concerns over potential oversupply from the company's plan to increase gas turbine manufacturing capacity to 30 GW annually by 2030. Morgan Stanley analyst David Arcaro viewed this as an overreaction, raising its price target for GE Vernova (GEV) stock from $1,250 to $1,350 and maintaining an Overweight rating. He argued that the company's strong order book—77 GW of new gas contracts in the past year with a 2.5x book-to-bill ratio—indicates robust demand well beyond current production capacity. The stock rebounded on July 23, rising nearly 4.5% for the day and gaining over 51% from the start of the year. The earnings miss was largely due to underperformance in GE Vernova’s wind segment, which saw a widening EBITDA loss and declining orders.
Topics: analyst report gas turbines GE Vernova guidance update Morgan Stanley