In a report released yesterday, Ameet Thakkar from BMO Capital maintained a Buy rating on GE Vernova Inc., with a price target of $690.00.
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Ameet Thakkar has given his Buy rating due to a combination of factors surrounding GE Vernova Inc.’s strategic acquisition and financial outlook. The company announced a significant acquisition of the remaining 50% ownership in its North American Transformer joint venture, Prolec GE, for $5.275 billion. This acquisition is seen as a strategic move to enhance their Electrification segment, with the potential to achieve cost synergies that could make the acquisition price more attractive.
GE Vernova’s financial projections also play a crucial role in the Buy rating. The company has increased its free cash flow guidance significantly, providing flexibility for additional leverage. Furthermore, GE Vernova’s EBITDA projections for the coming years suggest a conservative outlook, with potential for higher growth. The acquisition is expected to align well with the company’s strategic goals, given its strong domestic U.S. footprint, and could lead to revenue synergies by expanding sales channels beyond North America.
In another report released on October 17, Bank of America Securities also reiterated a Buy rating on the stock with a $725.00 price target.
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.