GE Vernova (NYSE: GEV) shares rose 3.6% on Friday to close at $957.27 after Jefferies raised its price target to $1,185 from $1,155. Analyst Julien Dumoulin-Smith maintained a Buy rating.

The stock had been under pressure before the session, trading more than 23% below its 52-week high of nearly $1,196, reached in late June.

Dumoulin-Smith’s report criticized what he described as “peak order myopia.” He argued that investors are too focused on whether new equipment orders have reached their peak and are overlooking the longer-term potential of GE Vernova’s services business.

The company’s equipment orders doubled year over year in the second quarter. While that growth has attracted attention, Dumoulin-Smith said the focus on new orders has led investors to undervalue recurring services revenue.

Large gas turbines require maintenance and upgrades throughout their operating lives. Based on an installed fleet of more than 400 gigawatts, Dumoulin-Smith projects that GE Vernova could generate more than $70 million per gigawatt-year from its installed base during the 2030s.

He also said GE Vernova’s earnings are less dependent on data-center deployment cycles than those of rivals with greater exposure to inventory-driven businesses, including cooling equipment and low-voltage electrical gear.

Dumoulin-Smith projects that the company’s services business in 2030 will be only half the size it is expected to reach by 2040. He said this long-term growth runway is not fully reflected in current valuations.

Analyst Views and Valuation

Dumoulin-Smith is not alone in maintaining a positive view of GE Vernova. Approximately 78% of analysts covering GEV rate the stock a Buy, compared with a typical Buy ratio of 55% to 60% for S&P 500 companies. The average analyst price target is approximately $1,240, above Jefferies’ $1,185 target.

GEV trades at roughly 45 times forward earnings, compared with approximately 30 times for peers such as Eaton (ETN) and Schneider Electric. Dumoulin-Smith said the premium is supported by the projected trajectory of the company’s services growth.

Fitch Ratings recently upgraded GE Vernova’s long-term issuer default rating to A- from BBB+, citing expansion in EBITDA margins and strong free cash flow.

Upcoming Events

Jefferies identified several developments that could affect the stock in the coming months. They include the possibility of a beat-and-raise outcome in the third quarter of 2026, fiscal-year 2027 guidance in January, and updates to long-term guidance expected in March 2027.

The firm said these events could change expectations for GE Vernova’s services earnings power at maturity. Jefferies added that current buy-side and sell-side projections are below its own estimates.

According to InvestingPro data, GE Vernova shares are up 42% year to date despite the pullback from their June high. BMO Capital has an Outperform rating on GEV, citing the outlook for gas-turbine demand. Mizuho has a $949 price target, reflecting expectations for increased gas-turbine manufacturing capacity.

Source: CoinCentral.