BofA Reiterates Buy on $GEV With $1,310 Target as AI Data Center Power Demand Drives Orders

Bank of America Securities reiterated its Buy rating and $1,310 price target on GE Vernova ($GEV), implying roughly 47% upside from its recent close of $890.33 ahead of its third-quarter earnings report. Analyst Andrew Obin highlighted that escalating energy requirements from artificial intelligence data centers continue to drive heavy demand for the company's gas turbines and grid electrification infrastructure.
Obin projects third-quarter orders to surge 44% year-over-year to $21.0 billion, reflecting a book-to-bill ratio of 1.70x, alongside above-consensus estimates of $12.4 billion in revenue and $1.8 billion in adjusted EBITDA:
• Order breakdown is forecast at $13.4 billion for Power, $6.2 billion for Electrification, and $1.5 billion for Wind.
• Gas turbine equipment commitments are expected to reach 13 gigawatts in Q3 and 14 gigawatts in Q4, supported by management guidance projecting second-half contracts to surpass 20 gigawatts.
• Production pipelines extend into 2032 delivery slots, sustaining multi-year backlog visibility despite shares pulling back roughly 9% over the past five trading sessions.