GE Vernova Posts Strong Q1: Guidance Reflects Limited Tariff Impact, Says Bullish Analyst

GE Vernova Inc's GEV first-quarter results indicate a strong start to the year, lending support to the stock, according to Goldman Sachs.

The GE Vernova Analyst: Analyst Joe Ritchie reiterated a Buy rating and a price target of $500.

The GE Vernova Thesis: The company reported segment EBITDA of $576 million, beating the consensus estimate by 34%, "driven by strength across the board," Ritchie said in the note.

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"We were particularly encouraged by both Power and Electrification margins eclipsing 11% in Q1," he added.

Power orders were the highlight of the quarter, up 28% year-on-year organically, "with 7.1GW in Gas Power equipment orders (ahead of the 5GW target) and 29GW now in backlog," the analyst stated

GE Vernova also indicated 21GW of slot reservation agreements, which it is yet to convert into orders, he said.

Management reiterated their full-year guidance, despite an additional impact of around $300-$400 million from tariffs, Ritchie noted.

The company repurchased shares worth $1.2 billion in the first quarter, while still maintaining a cash balance of more than $8 billion, and could aggressively buy back shares going forward, he stated.

GEV Price Action: Shares of GE Vernova had risen by 6.42% to $347.01 at the time of publication on Wednesday.

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