TLDR
- Jefferies analyst Julien Dumoulin-Smith raised his GE Vernova price target to $1,185 from $1,155, maintaining a Buy rating
- The analyst says investors are too focused on “peak orders” and overlooking the long-term services business
- GEV stock closed up 3.6% at $957.27 on Friday
- 78% of analysts covering GEV rate it a Buy, well above the S&P 500 average of 55-60%
- Key upcoming catalysts include a potential Q3 2026 beat-and-raise and FY2027 guidance in January
GE Vernova (GEV) stock jumped 3.6% on Friday, closing at $957.27, after Jefferies raised its price target on the stock to $1,185 from $1,155. Analyst Julien Dumoulin-Smith kept his Buy rating in place.
The stock had been under pressure heading into Friday. Coming into the session, GEV was down more than 23% from its 52-week high of nearly $1,196, hit in late June.
Dumoulin-Smith’s report took aim at what he called “peak order myopia.” His argument is that too many investors are fixated on whether new equipment orders have topped out, while missing the bigger picture on services.
GE Vernova’s equipment orders doubled year over year in Q2. That kind of growth gets attention. But Dumoulin-Smith says the obsession with new orders is causing investors to undervalue the company’s long-term services revenue.
The service business is the key here. Large gas turbines need ongoing maintenance and upgrades over their lifespans. Dumoulin-Smith projects GE Vernova could exceed $70 million per gigawatt-year of installed base in the 2030s, based on a fleet of 400-plus gigawatts.
He also points out that GE Vernova’s earnings are less tied to data center deployment cycles than rivals exposed to inventory-driven businesses like cooling equipment or low-voltage electrical gear.
The company’s services business in 2030 will be just half of what it is projected to be by 2040. That’s a long runway that Dumoulin-Smith says current valuations aren’t pricing in.
Wall Street Broadly Bullish
Dumoulin-Smith is far from alone in his view. Some 78% of analysts covering GEV rate it a Buy, compared to the typical 55-60% Buy ratio for S&P 500 stocks. The average analyst price target sits around $1,240, above Jefferies’ $1,185.
GEV trades at roughly 45 times forward earnings. That’s a premium to peers like Eaton (ETN) and Schneider Electric, which trade closer to 30 times. Dumoulin-Smith argues the premium is justified given the services growth trajectory.
Fitch Ratings recently upgraded GE Vernova’s long-term issuer default rating to A- from BBB+, citing EBITDA margin expansion and strong free cash flow.
Upcoming Catalysts
Jefferies flagged several events that could move the stock in the coming months. A potential beat-and-raise in Q3 2026 results is one. FY2027 guidance in January is another. Long-term guidance updates are expected in March 2027.
The firm says these events could reset expectations for GE Vernova’s services earnings power at maturity, with current buy-side and sell-side projections lagging behind Jefferies’ own models.
The stock is up 42% year-to-date, according to InvestingPro data, even after its pullback from the June highs.
BMO Capital has an Outperform rating on GEV, driven by the gas turbine demand outlook. Mizuho has a price target of $949 on the stock, reflecting expectations of increased gas turbine manufacturing capacity.
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