The firm initiated coverage of the energy company with an overweight rating.
GE Vernova can help meet the massive energy demands from artificial intelligence, according to Wells Fargo. Its price target of $385 implies more than 12% upside from Wednesday's close. The company was spun off from General Electric earlier in 2024 , alongside other GE assets. Analyst Michael Blum said robust power demand tied to AI could lead to GE Vernova emerging as a key beneficiary, especially because the subsequent buildout will require an update to the power grid.
"As power demand grows and more distributed generation is added to the mix, aging grids will require significant investment to manage the increasingly complex and dynamic environment," Blum said. "GEV's transformers, HVDC , and grid software offerings are well positioned to benefit from this growing demand." Blum expects power demand to grow at a 3% compound annual growth rate from 2024 to 2032.
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