GE Vernova's Q2 Beat May Push 2028 Profit Margin Target 2 Years Early

As global energy demand rises, companies like GE Vernova Inc. (NYSE:GEV) are strategically positioning themselves to capitalize on the shift towards electrification and renewable power. This broader trend is reflected in the company’s latest financial performance, promising significant growth opportunities.

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GE Vernova reported better-than-expected earnings for the second quarter on Wednesday. The announcement came amid an exciting earnings season.

Here are some key analyst takeaways.

RBC Capital Markets On GE Vernova

Analyst Christopher Dendrinos maintained an Outperform rating, while raising the price target from $561 to $631.

GE Vernova reported total revenues of $9.1 billion, up 11% year-on-year and higher than consensus of $8.8 billion, Dendrinos said in a note. The company's total orders grew around 4% year-on-year to $12.4 billion, "driven by continued strong demand in Power and Electrification," he added.

GE Vernova strong sales and orders are "continued proof points that there is additional positive momentum in the long-term margin opportunity," the analyst wrote. The company seems poised to reach its 2028 margin target as early as in 2026, he further wrote.

 Check out other analyst stock ratings.

BMO Capital Markets On GE Vernova

Analyst Ameet Thakkar reiterated an Outperform rating, while lifting the price target from $590 to $690.

The rally in GE Vernova's stock following the earnings release had less to do with the second-quarter beat and full-year guidance increase, Thakkar said. The stock was driven by "signals of power market tightening," he wrote.

The company had projected to reach 14% EBITDA margins by 2028, based on its Power and Electrification segments reaching 16% margins, the analyst stated. While the Power segment already reached 16.4% EBITDA margins in the second quarter, the Electrification business is likely to cross 16% in the fourth quarter, he added.

GEV Price Action: GE Vernova shares were up 0.36% at $631.27 at the time of publication on Thursday, according to Benzinga Pro.

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