GE Vernova: Laser Focused On Execution, With Cyclical Tailwinds

Following a meeting with GE Vernova Inc's (NYSE:GEV) CEO Scott Strazik and Vice President of Investor Relations Michael Lapides, Bank of America Securities analyst Andrew Obin said management is "laser focused on execution” while there are cyclical tailwinds.

The analyst highlighted the following takeaways from the meetings:

• Federal regulatory stance is favorable for power/grid projects.
• Gas power equipment orders so far in the fourth quarter include a "sizeable mix" of data center demand," which management expects will grow. GE Vernova 18 gigawatts (GW) of new gas power equipment bookings and slot reservation agreements (SRAs) in the quarter. Data center orders represent more than a third of these orders.
• The company is investing in products for data centers and fuel cells. "Strazik sees the upcoming data center transition from low voltage, alternating current to high voltage, direct current (HVDC) as an opportunity to win initial customers," Obin wrote in the note.

The analyst maintained a Buy rating and price target of $804.

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GEV Price Action: Shares of GE Vernova had declined by 0.66% to $676.86 at the time of publication on Tuesday.

Read More:

• Why GE Vernova’s Ambitious Roadmap Has Analysts Divided

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