Baird raised its recommendation on GE Vernova (NYSE: GEV) from Neutral to Outperform on Wednesday, alongside a substantial increase to its price target, now set at $923, up from $701.
The upgrade arrives about one month after Baird had downgraded the stock to Neutral. In explaining the reversal, Baird said it now views the energy infrastructure cycle as being in the early stages and identifies GE Vernova as "one of the biggest beneficiaries" of that trend.
Previously, Baird had flagged potential overcapacity risks in the gas power market after competitors made announcements that suggested additional supply. The firm said recent field checks have eased those overcapacity concerns for the near to intermediate term, prompting the more constructive stance.
Despite the rating change and the elevated price target - a $222 increase - Baird did not alter its earnings estimates for GE Vernova. The firm attributed the target lift to its renewed conviction around the company’s positioning within the energy infrastructure cycle rather than to adjustments in near-term earnings projections.
GE Vernova reported robust fourth-quarter 2025 results that align with the favorable tone from analysts. The company posted earnings per share of $13.39, well above the forecasted $3.22. Revenue for the quarter came in at $11 billion, exceeding the expected $10.23 billion.
Alongside the quarterly beat, GE Vernova has formalized a strategic alliance with Xcel Energy to cooperate on generation and grid projects that extend into the 2030s. The agreement includes a reservation for five F-class gas turbines and a capacity reservation arrangement covering multiple gigawatts of wind projects.
Another brokerage, Mizuho, also revised its valuation for GE Vernova upward, increasing its price target to $714 from $660, an 8 percent raise, while leaving its rating at Neutral. Mizuho’s revised valuation reflects anticipated expansions in gas turbine capacity and growth in service revenue.
The combination of Baird’s upgrade and Mizuho’s higher price target underscores investor and analyst attention on GE Vernova’s role in power generation equipment and services as energy infrastructure investments evolve.
Analyst action and company developments in focus:
- Baird upgraded GEV to Outperform and raised its price target to $923 from $701.
- Baird maintained earnings estimates while increasing the price target by $222.
- GE Vernova reported Q4 2025 EPS of $13.39 against a $3.22 forecast and revenue of $11 billion versus $10.23 billion expected.
- GE Vernova entered a strategic alliance with Xcel Energy, including reservations for five F-class gas turbines and multiple gigawatts of wind capacity.
- Mizuho raised its price target to $714 from $660 while keeping a Neutral rating.