Jefferies has reiterated a Buy rating on GE Vernova, assigning a $1,210 price target and identifying the company as its top franchise pick in the U.S. power and utilities complex for 2026. The investment bank's stance remains constructive even after GE Vernova’s shares have fallen roughly 30% from April highs.
Jefferies points to an attractive second-quarter 2026 setup, driven by what it describes as a resilient order profile and pricing commentary that should address market concerns about the long-term competitiveness of gas turbines into the 2030s. The firm projects about $14.2 billion in power orders in the second quarter, which it characterizes as roughly a 15% increase versus consensus estimates.
The bank expects GE Vernova to secure 10-15 gigawatts of contract bookings in the quarter, with bid prices running 10-20 basis points above fourth-quarter levels. Jefferies also anticipates that the company's goal of reaching a 110-gigawatt order-and-slot backlog by year-end is likely to be met during the second quarter.
Channel checks cited by Jefferies suggest continued robustness in the large-frame gas turbine market. Those checks run counter to worries that behind-the-meter installations could encroach on front-of-the-meter demand for large turbines. Several industry participants reportedly dismiss the prospect of near-term weakness in turbine quoting or order intake, with many anticipating that positive pricing could persist for three to four years or longer.
Beyond the power-generation franchise, Jefferies underscores GE Vernova’s potential exposure to data center electrification. The firm notes that the Electrification segment posted $2.4 billion in orders during the first quarter of 2026, and it highlights transformers as a key bottleneck constraining project development. Jefferies argues that market expectations may underappreciate capital redeployment prospects and revenue synergies stemming from the Prolec acquisition.
Those synergies, together with potential upside from the Electrification division, are framed by Jefferies as catalysts that could prompt upward guidance revisions later in 2026. In a separate coverage move, Raymond James initiated coverage on GE Vernova with a Market Perform rating.
Jefferies has adjusted its price target to $1,210 in light of an anticipated extension of the order backlog into 2031. The firm’s analysis centers on order intake, pricing momentum and Electrification pipeline dynamics as the principal drivers supporting its constructive view.
Clear summary
Jefferies reiterates a Buy on GE Vernova with a $1,210 price target, naming it its top U.S. power and utilities pick for 2026. The bank highlights stronger-than-expected gas turbine demand, favorable pricing, a projected $14.2 billion in second-quarter power orders, and data center-related opportunities within Electrification as the main rationale.
Key points
- Jefferies keeps a Buy rating on GE Vernova and sets a $1,210 target despite a roughly 30% stock decline from April highs.
- The firm forecasts about $14.2 billion in Q2 power orders, a 15% premium over consensus, and expects 10-15 GW of bookings with pricing 10-20 basis points higher than Q4.
- Electrification recorded $2.4 billion in Q1 2026 orders; transformers are noted as a bottleneck, and Prolec acquisition synergies could be material late in 2026.
Risks and uncertainties
- Order flow and pricing could evolve differently than Jefferies projects - this affects the power-generation and equipment supply chains.
- Transformer bottlenecks and supply constraints in Electrification could limit near-term revenue realization and project timelines.
- Market sentiment and share price movements have already shown volatility, illustrated by the roughly 30% decline from April highs, which may persist.