- The Street Sheet
- Posts
- 💥 Super-Vernova
💥 Super-Vernova
Plus, no need to wait for the IPO...
🎅 Merry Christmas to everyone on The Street!
The markets may be closed today, but we're still here, with another one of “Yesterday’s Top Trade Idea, Today” — one of our previous stories that seasoned over time like a cast-iron skillet.
Will this stock continue to sizzle in the new year? That’s up to you to decide — but it’s usually a safe bet to follow your nose.
Sponsored by Augment
Augment enables investors to buy and sell shares in private companies in minutes for as little as $10k*. Companies like SpaceX, Glean, and Databricks. No management fees, no carried interest, just a flat one-time upfront fee. Plus, you don't need to wait for the IPO… get early liquidity by selling to someone in our network.
*Time to invest varies. Excludes sign-up, required approvals, and third-party processes like bank transfers. Not all deals available for same-day execution. See our Terms of Service for full details.Early liquidity opportunities may be available for certain investments. However, please note that liquidity is not guaranteed and is subject to market conditions, company performance, and other factors. Private investments are inherently illiquid, and the timing and availability of liquidity events can vary significantly. Investors should carefully review the offering documents and understand the risks involved before making any investment decisions. Augment does not make any representations or warranties regarding the timing, availability, or certainty of liquidity events. Terms and conditions apply. Please review the offering documents for more information on early liquidity options.
YESTERDAY’S TOP TRADE IDEA, TODAY
This story wasn’t published too long ago — on 10/22/2024. But in the two months since then, GE Vernova (GEV) has gone supernova, rising as much as the S&P 500 did all year: 24%. The stock’s total YTD gain clocked in at 143%, as of Friday, December 20.
Can Vernova Go Supernova?
How High Can It Go?
Could GE Vernova (GEV) go supernova? Deutsche Bank seems to think so. It initiated coverage of the electrical services company at a Buy rating and a $354 price target. For context, the stock closed at $276.42 today.
The stock’s off to a good start. It has almost doubled in value since spinning off from General Electric (GE) in April. But most analysts covering it think it has even further to run, rating it a Buy or Strong Buy.
Electrical Surges
Analysts believe that GE Vernova’s continued growth will be fueled by its investments in power-generating assets as electricity demand continues to increase, thanks to AI data centers.
Nicole DeBlase, a Deutsche Bank analyst, believes that GEV can be an industry leader in terms of revenue and earnings growth. AI-powered demand could drive both revenue and margin expansion for its electrification business.
Its wind turbine business is projecting long-term growth as well. Wind energy is expected to account for 25% more of worldwide electricity generation by 2040.
Multifaceted Momentum
GEV’s gas power segment is also shaping up to be a tailwind for the stock. DeBlase said demand for gas turbines is rising as existing electrical grids become over-stressed, which has resulted in a spike in orders.
Now the company is increasing its heavy-duty gas-turbine manufacturing to meet demand. As more customers utilize these products, service orders have been increasing as well.
In other words, GEV has momentum in multiple arms of its business. It makes sense that the stock is surging, but according to analysts, its strong run may be long from done.
Original Poll Results
Are you bullish or bearish on GE Vernova (GEV) over the next 12 months?
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨⬜️⬜️⬜️⬜️⬜️ 🐻 Bearish
Together With Prosperity Pub
Apple has shown consistent movement on certain dates over the years—do you know when? Stock Hotsheets reveal historically significant patterns for top stocks like Walmart and LULU. Find out more today.
Reply