Morgan Stanley sees ‘fairly little risk’ to GE Vernova fundamentals from failure

Morgan Stanley notes that a blade failure was reported last week at the Dogger Bank offshore wind project in England on a GE Vernova turbine. The blade failure at Vineyard Wind in July, which was due to insufficient bonding of the blade, was manufactured at the company’s facility in Canada, while a majority of the blades for the Dogger Bank project are manufactured at the company’s Cherbourg facility in France, notes the analyst, who also points out that no work stop order has been issued for the Dogger Bank project. While these blade failure headlines create volatility in the stock, the firm currently sees “fairly little risk to the underlying profitability or fundamentals of GEV‘s business” and the firm keeps an Overweight rating and $220 price target on GE Vernova shares.