Morgan Stanley Raises GE Vernova Stock Target Amid Capacity Expansion and Strong Order Book
GE Vernova (GEV) announced plans to increase its gas turbine manufacturing capacity from 24 GW by 2028 to 30 GW by 2030, which initially caused a sharp selloff in the stock. However, shares rebounded strongly on July 23 after Morgan Stanley raised its price target for GEV from $1,250 to $1,350 and maintained an Overweight rating. Morgan Stanley analyst David Arcaro argued that the market overreacted by interpreting the capacity increase as a sign of future oversupply. He pointed out strong demand signals in Q2 2026, including signing 77 GW of new gas contracts in the past year and securing most of its 2030 production slots already. Despite an earnings miss due to wind segment losses, GE Vernova raised full-year revenue guidance by $1 billion at the midpoint and nearly doubled free cash flow projections. The company's strong order book and capacity utilization suggest continued demand for gas turbines in coming years.
Topics: capacity expansion gas turbines Morgan Stanley stock analysis