S&P 500 component GE Vernova was upgraded early Monday with analysts seeing further 18% upside as demand for energy is expected to be a long-term positive for the company. GEV stock advanced at the stock market open.
Melius Research analyst Rob Wertheimer upgraded GE Vernova to a buy rating from the previous hold designation and now has a 740 price target on the shares. Wertheimer noted that GEV is up more than 400% since General Electric wrapped up its big, long-term breakup last year and that there remains a lot of room for "surprise to the upside on sell side estimates moving toward 2027 and beyond."
On Friday, Jefferies raised its GE Vernova price target to 668 from 658 and kept a hold rating on the shares. Jefferies analysts noted that management has said it is "not going to surprise that differently on top line revenue." for 2028 and that potentially decelerating revenue growth out of 2028 "implies less support for a premium valuation."
Morgan Stanley analyst David Arcaro wrote Monday that coming out of the Laguna Conference, he "came away with increased confidence in the long-term outlook" for GE Vernova.
"Considering the outlook for continued data center growth, electrification across the economy, and industrial growth globally all supporting greater electric demand for a prolonged period, management sees the current cycle as strong and longer than almost any period in history," Arcaro wrote Monday.
Investors can also keep tabs on the Leaderboard, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
S&P 500: GE Vernova Stock Performance
GE Vernova stock increased around 1% to 633 at the opening bell for Monday's stock market after advancing 7.5% to 625.55 last week. The S&P 500 stock has a traditional buy point of 677.29, according to MarketSurge charts.
Last week, GE Vernova pushed above the 50-day moving average, breaking a downward trendline in the base and flashing a possible buy signal.
Aggressive investors could use the Aug. 28 high of 646.95 as an early entry, according to chart analysis.
GE Vernova has booked a 92% gain in this year's stock market, making it the fifth best performer in the S&P 500 index entering Monday's market open.
How To Read Stock Charts
The company reports third-quarter earnings and revenue on Oct. 22. In late July, GE Vernova reported Q2 earnings of $1.73 per share, up from 8 cents a year ago, with revenue increasing 11% to $9.1 billion.
GE Vernova also lifted its 2025 outlook. The S&P 500 component expects revenue at the higher end of its $36 billion to $37 billion range. It also raised its free cash flow forecast to range from $3 billion to $3.5 billion, compared to its prior estimate for $2 billion to $2.5 billion.
Following earnings, William Blair analyst Jed Dorsheimer wrote that the S&P 500 giant is the "best name" in the AI power industry and that GE Vernova is "firing on all cylinders."
William Blair also noted that GE Vernova's natural gas turbine slot reservations are filling up through 2028, and that it added nine gigawatts of new contracts in Q2 for a total backlog of 55 gigawatts.
The S&P 500 stock has an 84 Composite Rating out of a best-possible 99. GE Vernova stock also has a strong 96 Relative Strength Rating and a 30 EPS Rating.
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