Analyst David Arcaro from Morgan Stanley maintained a Buy rating on GE Vernova Inc. and keeping the price target at $690.00.
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David Arcaro has given his Buy rating due to a combination of factors that highlight GE Vernova Inc.’s strong performance and promising outlook. The company reported a significant increase in gas turbine orders and slot reservations, which exceeded expectations and contributed to a robust backlog. This growth in bookings, along with rising prices for gas turbines, indicates a positive trajectory for future revenue and margin expansion.
Additionally, the acquisition of a 50% stake in Prolec GE is seen as a strategic move that enhances GE Vernova’s market scale in the transformer sector at a favorable price. Despite a slight miss in margins, the company’s revenue and adjusted EBITDA surpassed both Morgan Stanley estimates and consensus, reinforcing confidence in its financial health. The management’s reaffirmation of its full-year guidance, coupled with anticipated growth in the electrification segment, further supports the Buy rating as it suggests continued strong performance in the coming quarters.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GEV in relation to earlier this year.