GE Vernova: Gas Power Business Is Set to Benefit From Rising Electricity Demand

Rising electricity demand driven by artificial intelligence data centers and economywide electrification has garnered significant market interest in recent months. We view GE Vernova as well positioned to benefit from rising electricity demand given its generation (gas power, wind) and grid solutions offerings. We are increasing our fair value estimate for the company to $148 from $138 after incorporating upside to its gas power business from rising electricity demand. We view shares as fairly valued following outperformance since beginning trading in early April.