Electric power leader GE Vernova (NYSE:GEV) dipped in trading today despite receiving praise from Mizuho Securities, which issued a Buy rating and set a price target of $154 per share. Mizuho’s optimistic projection is based on GE Vernova reaching a 10% adjusted EBITDA margin by 2026, significantly ahead of the company’s own 2028 target.
Analyst Maheep Mandloi pointed to GE Vernova’s gas power business, which delivers consistent and increasing cash flow. In fact, the Gas Turbine segment had a 10% EBITDA margin in 2023. In addition, margin growth is expected from its Wind segment, as it saw a -11% EBITDA margin last year.
Interestingly, Mandloi’s price target represents a valuation premium compared to the S&P 500’s average. Indeed, $154 per share is equivalent to 14x his 2025 EBITDA estimate. He justifies the premium by assuming that GEV will see continuous margin improvements.
Is GEV Stock a Buy?
GEV has so far gained the attention of three analysts since its spinoff at the beginning of the month. All three have Buy ratings with an average GEV price target of $151.67 per share.
