GE Vernova: A Deserved Tech Stock Valuation
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Ricardo Fernandez3.02K FollowersFollow5ShareSavePlay(6min)CommentsSummaryGEV investor day confirmed a high demand and earnings growth for the company through 2028 of over 30%. Electric turbines (gas, water, or nuclear) and grid expansion are strategic for AI and the data center buildout. The updated estimates and valuation lead to an increase in my YE26 price target to $907 with a longer-term $1,400 priced at 1.25x PEG. GEV and other turbine makers should be valued like tech stocks as long as they deliver on earnings growth. Key risk is the size and pace of data center construction, raw material costs, and potential service competition. photosoup/iStock via Getty Images Introduction GE Vernova (GEV) made headlines and pushed its stock price higher by confirming medium and long-term growth and profitability trends, mostly in line with consensus forecasts. In September, I updated the GEV viewThis article was written byRicardo Fernandez3.02K FollowersFollowI have more that 35 years of experience in the investment field having worked as a sell & buy side analyst and portfolio manger for debt and equity funds. I am currently managing a high yield Latam bond fund.My goal, as a Seeking Alpha contributor, is to provide a fundamental view and analysis of companies and funds in a streamlined version of institutional research. The operating and financial forecast, whether my own or based on consensus, drives the valuation and ultimate rating. I like numbers (financial statements) and use words to explain there meaning and potential consequences.For the most part, my selection choices reflect what I believe can offer long term potential and I frequently take positions in many ideas for my personal account.Analyst’s Disclosure:I/we have a beneficial long position in the shares of GEV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsWhy does GEV expect such high margin gains?Due to pricing power, its capacity is almost sold out until 2028Recommended For You