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Key Takeaways
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GE Vernova shares surged Tuesday after Bank of America analysts raised their price target for the energy company's stock.
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The analysts suggested the company could benefit from rising prices for gas turbines.
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GE Vernova is set to report fourth-quarter results on Jan. 22.
GE Vernova (GEV) shares jumped Tuesday after Bank of America analysts raised their price target for the company's stock ahead of its fourth-quarter earnings report next week.
The analysts raised their price target to $415 from $380, bringing it above the analyst consensus compiled by Visible Alpha at $386, and maintained a “buy” rating, suggesting the company could benefit from rising prices for gas turbines. Shares of GE Vernova climbed 4.2% to close at $382.26 Tuesday and have gained more than 16% since the start of the year.
BofA said it can only estimate gas turbine prices because energy costs vary depending on the customer and contract bidding isn’t done publicly. However, the analysts said government cost studies, certain market transactions, and producer price index data suggest prices have risen at a high-single-digit pace since 2019 and could continue to climb, benefitting GE Vernova.
Beyond gas turbines, GE Vernova also has a market opportunity in steam turbines, heat recovery steam generators, and other equipment, the analysts said.
The company is set to report fourth-quarter earnings on Jan. 22 before the opening bell.
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