GE Vernova Inc. (NYSE:GEV) reported a strong third quarter with orders surging 55% organically and announced it will acquire full ownership of Prolec GE, boosting its stake in North America’s transformer market and positioning the company to capture growing grid investment opportunities.
Bank of America analyst Andrew Obin revised estimates for GE Vernova following third-quarter results. The analyst maintained the Buy rating with a price forecast of $725.
Earnings Results
On Wednesday, the company reported GAAP earnings per share of $1.64, missing the consensus estimate of $1.92, while total revenue reached $9.969 billion, exceeding the forecast of $9.158 billion.
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GE Vernova reaffirmed its full-year 2025 guidance, expecting revenue to reach the higher end of the $36.0–$37.0 billion range, slightly below the $37.186 billion consensus estimate.
Analyst View
The analyst writes that quarterly results were solid, underscored by outstanding organic order strength.
The analyst views the agreement to acquire the remaining 50% stake in Prolec GE for $5.275 billion as even more positive.
The acquisition, which secures the company’s North American transformer sales channel, is priced at 13.9x 2025 EV/EBITDA, notes the analyst.
Obin writes that management estimates the deal to add $600 million to 2026 EBITDA and generate around $60 million-$120 million in cost synergies by 2028.
Analyst Estimates
The analyst maintains the adjusted EBITDA forecast of $3.5 billion for 2025 (74% year-over-year increase), above the $3.4 billion consensus.
The analyst estimates 7% y/y organic revenue growth and margin expansion of 360 bps y/y for 2025.
For 2026, the analyst reiterates the adjusted EBITDA estimate of $5.5 billion above the consensus of $5.2 billion.
Other Price Forecast Changes
Several analysts have updated their price forecasts on GE Vernova. Citigroup’s Andrew Kaplowitz kept a Neutral rating on the stock but lowered the price forecast from $670 to $658.
Barclays’ Julian Mitchell maintained an Overweight rating and increased the price forecast from $706 to $710. Similarly, BMO Capital’s Ameet Thakkar retained an Outperform rating while raising the price forecast from $690 to $710.
Price Action: GEV shares were trading higher by 3.32% to $595.10 at last check Thursday.
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