Daiwa starts GE Vernova at Outperform amid favorable gas turbine backdrop

As previously reported, Daiwa analyst Dennis Ip initiated coverage of GE Vernova with an Outperform rating and $201.50 price target. The firm believes the gas turbine combined cycle, or GTCC, industry is “currently in a sweet spot” due to the global availability of low-cost natural gas on a scale, the COP28 endorsement of GTCC in the energy transition, deteriorating grids driving demand back to baseload power and and uptick in GenAI electricity demand, leading it to contends that GTCC will play a more important role in the global energy transition than the market expects. The firm sees this backdrop as one that bodes well for leading gas turbine makers, such as GE Vernova, to grow margins and profit, the analyst tells investors.