GE Vernova Rockets After Investor Day: Why Bank Of America Sees More Room To Run
GE Vernova Inc. (NYSE:GEV) jumped to fresh record highs on Wednesday after the company's New York investor update delivered what Bank of America called a "Super-Vernova" outlook.
The firm raised long-term financial targets, expanding capacity plans, and showcasing surging backlog growth.
Minutes into the New York session, GE Vernova shares blasted up to $720.86, a 15% jump that put the stock on pace for its biggest trading day since the spin-off.
Bank of America analyst Andrew Obin boosted GE Vernova’s price objective from $720 to $804, indicating the company's long-term earnings trajectory is accelerating faster than Wall Street expected.
GE Vernova’s Management Updates Go Above Consensus Again
Obin noted that management raised revenue guidance from $45 billion to $52 billion, with adjusted EBITDA margin guidance rising from 14% to 20%. That margin target sits well above the 18.1% consensus.
The most striking takeaway: 2028 guidance was raised even after a 33% upward revision earlier this year, suggesting demand is not just resilient but accelerating.
GE Vernova also expects total backlog to grow to around $200 billion by 2028, up from $135.3 billion at the end of the third quarter of 2025. Power alone should add at least $35 billion, with the Electrification backlog projected to double from $30.2 billion to about $60 billion.
A Massive Capacity Expansion Cycle
GE Vernova is gearing up for another expansion of its highest-margin businesses.
GE Vernova plans to produce up to 100 heavy-duty gas turbines annually by 2028 — or about 24 GW — up from the 15 GW baseline in 2024. The company is also committing another $1 billion in capex to expand its electrification segment, particularly grid solutions, signaling long-term confidence in energy transition trends.
Shareholder Returns: Bigger Buybacks and Dividends
The company also doubled its quarterly dividend to $0.50 per share and boosted its stock buyback program to $10 billion from $6 billion.
After accounting for $3.3 billion already repurchased this year, $6.7 billion remains authorized, roughly 4% of the current market cap.
Management reiterated its commitment to returning one-third of free cash flow to shareholders over time, reinforcing GE Vernova's evolution into a mature industrial compounder with strong capital discipline.
Why BofA Thinks GE Vernova Can Rally Further
Bank of America indicates that GE Vernova deserves a valuation premium for three reasons:
- Top-tier earnings growth — margins rising from 9.4% today to 20% by 2028
- Structural demand tailwinds — electrification, grid modernization, gas-to-renewables balancing
- Backlog visibility — expansion toward $200B supports multi-year confidence
With earnings nearly tripling from 2025 to 2028 and margin expansion across Power and Electrification, the investment bank expects GE Vernova to emerge as a dominant global energy-transition platform.
Now Read:
Image: Shutterstock