Overview
BMO Capital raised its price objective for GE Vernova (NYSE: GEV) to $785.00 from $780.00 on Thursday and reiterated an Outperform rating on the shares. The new target implies potential upside from the most recently reported share price of $711.59, though InvestingPro data indicates the stock may be trading above its Fair Value. GEV has recorded a 101.91% return over the past 12 months and is trading close to its 52-week high of $731.
Orders and commitments that drove the change
The analyst adjustment follows GE Vernova’s disclosure that fourth-quarter gas turbine orders and service and repair agreements (SRAs) totaled 24 gigawatts (GWs). That activity left the company exiting the year with 83 GWs in commitments. BMO points to that book of business as a supporting factor for its revised target and outlook.
InvestingPro analysis cited in the company commentary also notes a favorable balance-sheet position, with GE Vernova holding more cash than debt. That liquidity profile complements the operational momentum BMO describes in its note.
Guidance, Prolec and medium-term targets
GE Vernova has raised its fiscal year 2026 and 2028 guidance. BMO attributes those upward revisions in part to the anticipated close of the Prolec acquisition, which the firm says it had already included in its financial models. The bank also suggests potential upside from synergies associated with Prolec and characterizes the roughly 100 GW exit-rate target for gas turbine commitments as possibly conservative relative to the company’s underlying trajectory.
According to BMO Capital, GE Vernova expects to exit 2026 with 100 GWs in gas turbine commitments, implying about 35 GWs of new business between the company’s stated starting point and that exit rate.
Quarterly results and remaining headwinds
In its fourth-quarter 2025 results, GE Vernova substantially outperformed consensus estimates. The company reported earnings per share of $13.39 versus an expected $3.22, a 315.84% surprise. Revenue for the quarter reached $11 billion, exceeding the projected $10.23 billion. These results underpin the positive analyst revisions.
Despite the strong top- and bottom-line performance, GE Vernova continues to face challenges in its Wind business, a factor that has influenced the company’s forward guidance. Oppenheimer responded to the quarter by raising its price target to $871 from $855 while maintaining an Outperform rating, and explicitly noted the ongoing headwinds in Wind as a factor in its outlook.
Implications
The sequence of stronger-than-expected turbine bookings, an improving guidance profile tied to a pending acquisition, and a large quarterly earnings beat has prompted multiple analysts to lift targets and keep constructive ratings. At the same time, exposure to operational difficulties in the Wind segment and a share price that InvestingPro suggests may be above fair value are clear counterweights.
For market participants and sector observers, the developments are primarily company-specific but have relevance across the energy equipment and services space where gas turbine demand and aftermarket agreements drive revenue visibility.