During its first-quarter earnings call, GE Vernova (GEV, Financial) reported that despite favorable conditions in its end markets, it faces challenges due to tariffs and inflation. The company anticipates a cost increase ranging from $300 million to $400 million by 2025. In response, GE Vernova is implementing strategic pricing actions and expediting the transformation of its general and administrative cost structures to mitigate these financial pressures.
The company remains confident in its financial outlook, stating that the impact of tariffs and inflation is not expected to significantly affect its Power or Electrification divisions in the second quarter. However, GE Vernova noted the most pronounced tariff impact is within its operations in China.
Looking ahead, GE Vernova expressed caution regarding the timeline for improvements in the onshore wind market, indicating that market conditions remain uncertain.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for GE Vernova Inc (GEV, Financial) is $396.10 with a high estimate of $500.00 and a low estimate of $221.00. The average target implies an upside of 21.48% from the current price of $326.07. More detailed estimate data can be found on the GE Vernova Inc (GEV) Forecast page.
Based on the consensus recommendation from 32 brokerage firms, GE Vernova Inc's (GEV, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
