GE Vernova (GEV) continues to benefit from strong demand, a wider customer base, better pricing, software gains, rising cash flow, and buybacks, Oppenheimer said in a note Thursday.
The brokerage said Q1 orders of $18.3 billion came in well above its $13.5 billion estimate, showing demand remains strong and broad across customers and regions, and the company's integrated offerings are helping it win more business, especially in electrification, where data center orders in the quarter moved ahead of all of fiscal 2025.
GE Vernova's software business at both the product and operating levels still looks undervalued and could help margins beat forecasts, while strong cash generation and ongoing stock buybacks should continue to support the shares, according to the note.
Management's steady price increases and focus on efficiency should support earnings, the brokerage said, noting that the company raised its fiscal 2026 revenue, margin, and free cash flow guidance.
Oppenheimer kept its outperform rating on the stock and raised its price target to $1,303 from $1,139.
Shares of GE Vernova were up 2.6% in Thursday trading.
Price: $1157.05, Change: $+29.49, Percent Change: +2.62%