Top S&P 500 component GE Vernova has accrued several price target increases, with analysts projecting further upside. The stock has already advanced more than 70% in the 2025 stock market.
Bank of America analysts on Thursday raised their GE Vernova price target to 620, up from 550, keeping a buy rating on the shares. The price target hike implies 9% upside from current trading levels.
The analysts wrote that GE Vernova's 2027 EBITDA forecast of $7 billion remains 10% above analyst consensus. Bank of America added that a "premium multiple is warranted" given the company's expected earnings growth and margin trajectory.
On Wednesday, JPMorgan analyst Mark Strouse also raised his price target on the S&P 500 stock 620, noting that there is "potentially tricky setup" into earnings for GE Vernova with expectations running high ahead of the report.
Citi earlier this week increased its GEV price target to 544 from 354.
GE Vernova stock jumped 1.6% to 570.39 at Thursday's stock market close, after gaining 0.3% to 561.17 on Wednesday.
The stock hit a fresh all-time high of 581.27 intraday on Thursday.
Huge Q2 Earnings Growth Expected
The price target increases come just days before GE Vernova reports second-quarter earnings and revenue on July 23. Analyst consensus projects Q2 EPS soaring 1,787% compared to 8 cents per share a year ago, according to FactSet. GE Vernova sales are expected to increase 7%.
On next week's earnings call, investors and analysts will listen for commentary around its natural gas turbine backlog and demand. Both are being driven by, among other things, the buildout of AI data centers. In March, GE Vernova Chief Executive Scott Strazik said the company's backlog of orders for natural gas turbines, power transformers and switchgear stretches into 2028.
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"I would expect by the end of the summer, we will be largely sold out through the end of 2028 with this equipment," Strazik said in an interview at CERAWeek.
At the time, Strazik added a very small proportion of the company's backlog is explicitly related to AI.
"That's why there's so much growth to come, because we're really just starting," he said.
S&P 500: GE Vernova Stock Performance
At Thursday's stock market close, GE Vernova stock had gained 74%. That places it in the stock market's top two best performing S&P 500 components for 2025. Palantir is the only other S&P 500 stocks with a better year-to-date gain.
GEV stock is up more than 20% from a late-May breakout from a deep cup base, according to MarketSurge charts.
Meanwhile, the 54 stocks in the IBD tracked Energy-Alternative/Other industry group have collectively gained more than 58% in the 2025 stock market.
William Blair analyst Jed Dorsheimer at the end of 2024 proclaimed GE Vernova was a "top pick" for 2025, with natural gas set to play an important role as technology companies pour resources into artificial intelligence and the data centers needed to train the programs.
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GE Vernova emerged from General Electric's big, long-term breakup last year, with spinouts of GE Aerospace and GE HealthCare Technologies. GE Aerospace kept the GE ticker symbol.
Before the spinouts, the former General Electric shed a number of assets and operations over a series of years, from lighting to locomotives. In November 2017, GE began signaling the breakup process amid financial troubles.
The S&P 500 stock has a 21-day average true range of 3.44%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
GE Vernova stock has a strong 97 Composite Rating out of a best-possible 99. The S&P 500 stock also has a 97 Relative Strength Rating and an 81 EPS Rating.
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