Morgan Stanley has raised its price target on GE Vernova to $960 from $817, pointing to accelerating demand for gas turbines, upward pressure on pricing and a firmer medium-term growth outlook tied to electrification trends. The brokerage continues to carry an Overweight rating on the stock. Shares of the company climbed 5% on Monday as broader markets moved higher.
Analysts at the firm say a series of recent metrics indicate sustained momentum across GE Vernova's franchise. They cite gas turbine demand running ahead of expectations into the first quarter and note that pricing appears to be firming for orders expected later in the year.
"We expect Electrification will also support incremental medium-term growth and look towards Service & Nuclear opportunities in the 2030s for additional upside," Morgan Stanley analysts say.
On pricing, Morgan Stanley reports gas turbine prices are moving toward $3,000 per kilowatt from roughly $2,500 at present, an increase the firm describes as roughly 20%. The brokerage attributes the change in part to a stronger willingness among customers to invest in power infrastructure, particularly related to data center demand.
The firm also notes that GE Vernova is largely sold out through 2028, with only limited availability for 2029. That constrained availability, Morgan Stanley says, means higher pricing is likely to be reflected in contracts over the coming years.
In volume terms, Morgan Stanley expects cumulative gas turbine orders to approach GE Vernova's 100 gigawatt target by the end of the first quarter, which the analysts view as setting the company up for potential upside during the remainder of the year.
Beyond the core turbine business, the brokerage highlights electrification as a material driver of incremental demand. It points specifically to growing adoption of high-voltage direct current systems in data centers and to utilities that are extending gas generation plans beyond 2030. Morgan Stanley further identifies potential additional upside from services and nuclear opportunities in the 2030s.
Reflecting those views, the brokerage raised its revenue and EBITDA forecasts and suggested consensus estimates for 2030 could move higher as market expectations adjust to the new outlook.
This assessment presents a combined view of stronger near-term turbine momentum, rising pricing and medium-term tailwinds from electrification and adjacent service and nuclear prospects. The elevated price target and forecast revisions underline Morgan Stanley's more optimistic stance on GE Vernova's growth trajectory given current demand and contract visibility.