GEV Stock Forecast & Price Target

GE Vernova demonstrates a robust growth trajectory, with management revising revenue projections from $45 billion to $52 billion by 2028, indicating an acceleration of the company's compound annual growth rate (CAGR) for the 2025-28 period from 7%-8% to 12%-13%. The Electrification segment is highlighted as the fastest-growing part of the business, with expectations for its backlog to double from $30 billion in 2025 to $60 billion in 2028, underscoring strong demand dynamics in the electrification market. Additionally, the company's enhanced operational efficiency is showcased by raising the EBITDA margin forecast from 14% to 20%, along with an increase in cumulative free cash flow expectations from $14 billion to $22 billion for the 2025-28 period.

The negative outlook for GE Vernova's stock is primarily driven by the potential impacts of a slowing GDP growth, which could lead to stagnating or declining sales as demand for electricity—particularly in the AI sector—may not develop as expected. Furthermore, a downgrade in the company's credit rating below BBB- could result in diminished borrowing capacity and increased capital costs, ultimately affecting financial performance and market standing. Additionally, fluctuations in oil and natural gas prices, alongside challenges in project execution and innovation, may further jeopardize GE Vernova's market position and shareholder value.