GE Vernova: Hard To See Much Upside With Expectations This High

Bernard Zambonin 1.84K Followers Follow Summary GEV is sitting right on two of AI's nastiest bottlenecks: power availability and grid equipment. The real question is how fast GEV can turn that backlog into capacity, revenue, and margins. The ~31% long-term EPS growth story looks doable through 2028, but the math gets much tougher once the easy margin expansion is behind it. The business still looks red hot, but at 28x 2028E earnings, the stock leaves very little room for anything less than near-perfect execution. A_Columbo/iStock Editorial via Getty Images The investment case for GE Vernova ( GEV ) is relatively simple to understand. GE Vernova is today one of the main beneficiaries of two specific bottlenecks created by artificial intelligence: (1) power availability and (2) grid equipment. This article was written by Bernard Zambonin 1.84K Followers Follow Equity Research Analyst at DM Martins Research.I cover stocks that are often undercovered, focusing primarily on Brazil and Latin America — but I also occasionally write about global large caps. My work can also be found on TipRanks, where I contribute regularly, and on TheStreet, where I was a frequent contributor in the past.- Disclaimer: All views expressed here are my own and do not necessarily reflect the views or official positions of DM Martins Research. My articles and analyses are for educational and informational purposes only and should not be taken as investment advice. Always do your own due diligence before making any investment decisions. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.