BMO Raises GE Vernova (GEV) PT, Keeps Outperform Rating

GE Vernova (NYSE:GEV) is one of the 13 Best Large Cap Stocks to Buy Right Now. On July 8, BMO Capital kept an “Outperform” rating on GE Vernova Inc. (NYSE:GEV) while increasing its price target from $522 to $590.

The firm’s updated analysis focused on the company’s Gas Power business. BMO Capital analysts highlighted strong, contracted earnings growth beyond 2030. This growth is expected to be driven by long-term service agreements (LTSAs) in the gas power service segment.

BMO Capital expects that by 2035, GE Vernova Inc. (NYSE:GEV) will generate about 2.5 times the annual revenue from LTSAs compared to 2024 levels, with gross margins nearly 1000 basis points higher.

Additionally, BMO Capital noted that GE Vernova Inc. (NYSE:GEV) has surged 85% over the last three months and near-term valuation metrics may appear stretched at 28 times the firm’s estimated 2026 EBITDA.

The firm pointed out that while investors recognize the current gas turbine equipment orders can boost earnings from 2028 onward, the market has not fully recognized the significant upside potential from gas power service LTSAs.

GE Vernova Inc. (NYSE:GEV) is an energy equipment manufacturing and services company.

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Disclosure: None. This article is originally published at Insider Monkey.