GE Vernova (GEV) Stock Gets $804 Price Target from Bank of America on Raised Guidance

TLDR

Table of Contents

Bank of America boosted GE Vernova stock price target to $804 from $725 while keeping its Buy rating
Company raised 2028 revenue forecast to $52 billion with 20% EBITDA margin, up from $45 billion and 14% margin
GE Vernova secured yttrium supply through 2025 and into 2026 despite China’s export restrictions
Total backlog projected to grow from $135 billion to $200 billion by 2028
Company plans 20% capacity increase for gas power equipment by 2028

Bank of America raised its price target on GE Vernova stock to $804 on Tuesday. The investment firm increased its target by $79 from the previous $725.

GE Vernova Inc., GEV

The upgrade followed GE Vernova’s investor day in New York on December 9. BofA kept its Buy rating on the stock.

GE Vernova boosted its 2028 financial targets beyond analyst expectations. The gas turbine maker now expects $52 billion in revenue with a 20% adjusted EBITDA margin.

The company previously forecast $45 billion in revenue and a 14% margin. This represents a 33% upward revision for the year-to-date period.

CEO Scott Strazik outlined plans to increase gas power equipment capacity by roughly 20% by 2028. The expansion aims to meet growing demand for the company’s products.

GE Vernova’s total backlog is expected to jump from $135 billion to approximately $200 billion by 2028. The company also doubled its quarterly dividend to $0.50 per share.

The firm expanded its share repurchase authorization to $10 billion. It has already deployed $3.3 billion of that total.

Valuation and Growth Trajectory

Bank of America values the stock at 26 times its raised 2027 estimated EBITDA. That multiple sits above the 14 times peer average on 2026 estimates.

The premium valuation reflects GE Vernova’s earnings growth and margin trajectory compared to competitors. The company operates as one of only three major gas turbine makers worldwide.

GE Vernova expects to generate at least $22 billion in cumulative free cash flow from 2025 to 2028. That figure climbs from an earlier estimate of $14 billion.

The company recently secured its first international wind repower contract with Taiwan Power Company. The deal includes 25 repower upgrade kits and a five-year maintenance services agreement.

Rare Earth Supply Challenge

Strazik addressed yttrium supply concerns during the investor day presentation. China restricted exports of yttrium and six other rare earths in April 2025.

The move came as retaliation for U.S. tariffs. China supplies most of the yttrium used in specialty alloys and high-temperature coatings for gas turbines.

GE Vernova maintains yttrium inventories lasting through 2025 and into 2026. The company did not disclose exactly how far into next year supplies will stretch.

“We are very focused on it every day,” Strazik said. He confirmed GE Vernova is working with the U.S. government to boost rare earth stockpiles.

Yttrium prices outside China surged 4,400% between January and November 2025. Shortages have impacted aerospace, semiconductor, and energy sectors.

Alternative Materials Development

The company is investing in alternatives to replace certain rare earths if necessary. Some substitutes involve cost or performance trade-offs.

“We will continue to be opportunistic whenever there’s an opportunity to add to the inventory,” Strazik said. He described the company’s position as strong for the foreseeable future.

Washington and Beijing agreed to a new framework to speed up rare earth exports. Industry users still report severe shortages across multiple sectors.

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