Company Reports

Rising electricity demand driven by artificial intelligence data centers and economywide electrification has garnered significant market interest in recent months. We view GE Vernova as well positioned to benefit from rising electricity demand given its generation (gas power, wind) and grid solutions offerings. We are increasing our fair value estimate for the company to $148 from $138 after incorporating upside to its gas power business from rising electricity demand. We view shares as fairly valued following outperformance since beginning trading in early April.

GE Vernova’s strategy is centered on developing products and services that enable electrification and decarbonization. The company's power segment largely consists of its gas power operations, which has the largest installed gas turbine fleet in the world.

We maintain our $138 fair value estimate for no-moat GE Vernova following its first-quarter results. We continue to believe GE Vernova is well positioned to achieve its long-term margin targets but believe this is already priced into shares. Hence our view is that shares are fairly valued.

We are initiating coverage of GE Vernova with a no-moat rating and $138 fair value estimate. We view shares as fairly valued following a runup once shares began trading on a when-issued basis last week.

GE Vernova’s strategy is centered on developing products and services that enable electrification and decarbonization. The company's power segment largely consists of its gas power operations, which has the globally largest installed gas turbine fleet. We expect the ongoing push for decarbonization to drive continued investing in efficiency improvements for future product generations, as well as explore more step-change improvements, such as hydrogen or carbon capture capabilities.