TLDR
- GE Vernova stock receives $804 price target from Bank of America, up from $725
- Company projects $52 billion revenue and 20% EBITDA margin by 2028, beating prior $45 billion forecast
- Backlog expected to reach $200 billion by 2028 from current $135 billion
- GE Vernova has yttrium inventory through 2025 and into 2026 amid China export controls
- Gas power equipment capacity to increase 20% by 2028
GE Vernova stock got a boost from Bank of America on Tuesday. The firm raised its price target to $804 from $725.
BofA kept its Buy rating on the shares. The upgrade came after GE Vernova’s investor day presentation in New York.
The gas turbine maker increased its 2028 financial guidance above Wall Street expectations. Revenue is now targeted at $52 billion with a 20% adjusted EBITDA margin.
That compares to the previous outlook of $45 billion in revenue and a 14% margin. The revision marks a 33% increase in guidance year-to-date.
CEO Scott Strazik detailed plans to boost gas power equipment capacity by about 20% through 2028. The expansion supports the company’s growing order book.
GE Vernova’s backlog is projected to climb from $135 billion to roughly $200 billion by 2028. The company also announced a dividend increase to $0.50 per share quarterly, double the previous payout.
Share buyback authorization now stands at $10 billion. The company has used $3.3 billion so far.
Premium Valuation Justified
Bank of America prices the stock at 26 times its updated 2027 EBITDA estimate. Peer companies trade at an average of 14 times 2026 estimates.
The higher multiple reflects GE Vernova’s faster earnings growth and improving margins. As one of three major global gas turbine manufacturers, the company holds a strong competitive position.
Free cash flow generation is expected to reach at least $22 billion from 2025 through 2028. Previous estimates called for $14 billion over that period.
GE Vernova recently landed its first international wind repower deal with Taiwan Power Company. The contract covers 25 repower upgrade kits plus a five-year maintenance package.
China Export Restrictions Create Supply Concerns
Strazik addressed rare earth yttrium availability during Tuesday’s presentation. China limited exports of yttrium and six other rare earths in April 2025.
The restrictions targeted U.S. tariffs. China controls most global yttrium production used in specialty alloys and temperature-resistant coatings.
Current yttrium inventory will last GE Vernova through the end of 2025 and into 2026. The company declined to specify how deep into next year supplies extend.
“We are very focused on it every day,” Strazik told investors. GE Vernova is coordinating with U.S. government officials to build larger stockpiles.
Yttrium prices outside China jumped 4,400% from January through November 2025. Aerospace, semiconductor, and energy companies face severe shortages.
Backup Plans in Development
GE Vernova is developing alternative materials to replace some rare earths in production. Certain substitutes carry higher costs or lower performance characteristics.
Strazik said the company remains ready to add inventory when opportunities arise. He characterized GE Vernova’s supply position as solid for the near term.
The U.S. and China established a new framework to accelerate rare earth exports. Companies across industries continue reporting tight supplies.
GE Vernova’s strategic positioning extends beyond supply chain management. The company’s capacity expansion aligns with rising global demand for power generation equipment.
The increased dividend and expanded buyback program demonstrate management confidence in cash flow generation. Strong backlog growth supports the company’s raised financial targets through 2028.
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