Susquehanna starts on GE Vernova with growth in power demand

Investing.com -- Susquehanna initiated coverage of GE Vernova with a "Positive" rating and a $370 price target, citing strong demand for the company’s gas turbines and electrification technologies amid rising global power needs.

GE Vernova is the largest provider of gas turbines globally, with an installed base roughly twice the size of its nearest competitor.

The firm is well-positioned to benefit from growing electricity demand fueled by data center expansion, electrification, and reshoring of manufacturing capacity.

Susquehanna estimates GE Vernova can achieve an ~8% revenue CAGR from 2024 to 2027, with EBITDA growing at a 48% CAGR over the same period.

The company’s gas turbine capacity is largely sold out through 2027, providing high visibility into future revenue. Additionally, its electrification business—focused on grid modernization and transmission & distribution infrastructure—represents an earlier-stage growth driver.

The recent wave of energy-intensive data center buildouts has led to a significant upward revision in future power needs and has prolonged demand for natural gas capacity, the note stated.

Susquehanna sees GE Vernova increasing annual delivery capacity and raising prices to reflect strong demand, supported by a $120 billion backlog that provides revenue visibility for years to come.

Key catalysts include a potential upside to 2028 margin targets due to sustained pricing strength. Additional gas generation order announcements could boost growth. Further capacity expansion beyond current plans presents additional upside.

Susquehanna’s $370 price target implies significant upside, while a downside risk assessment values shares at $253, based on a 12x EV/EBITDA multiple on 2026 estimates.

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