GE Vernova initiated with a Perform at Oppenheimer

Oppenheimer analyst Colin Rusch initiated coverage of GE Vernova with a Perform rating and no price target. The firm views the company as a mission critical technology provider leveraged to the growth and increased complexity of power infrastructure. The restructuring of GE Vernova’s wind and electrification business are driving incremental margin improvement driven by updated pricing, manufacturing efficiencies and operating leverage, the analyst tells investors in a research note. While Oppenheimer sees the potential for the company to grow adjusted EBITDA margins from mid-single-digits to low double-digits, the firm believes its end-markets are fundamentally project based and run the risk of episodic delays resulting in potential headwinds on margins and limiting the full realization of restructuring benefits. Opco says the shares are already trading at levels supported by its upside scenarios.