GE Vernova $GEV ( ▲ 3.07% ) is rallying early Thursday after Jefferies upgraded the stock to Buy, adding fuel to a rebound tied to AI data center demand and improving power fundamentals. Shares are already up nearly 100% in 2025, and the upgrade suggests analysts still see room to run.
Gas turbines and services drive the bull case
In its note, Jefferies said it is growing more confident in GE Vernova’s power business, pointing to stronger gas turbine pricing and expanding services visibility. Analysts highlighted that gas pricing has continued to surprise to the upside, while long-term service contracts provide revenue visibility well into the 2030s, helping offset near-term weakness in gas equipment volumes.
That optimism came despite the stock being down since the company’s December 9 Analyst Day, which Jefferies framed as a buying opportunity rather than a warning sign.
Price target implies more upside
Jefferies raised its price target to $815 from $736, above the FactSet consensus target of $753. The new target implies roughly 23% upside from Wednesday’s close, suggesting the market may still be underestimating the durability of GE Vernova’s power and electrification businesses as energy demand tied to AI infrastructure accelerates.