On Monday, a Goldman Sachs (NYSE:GS) analyst increased the price target for General Electric (NYSE:GE) shares to $177 from the previous $156, while reiterating a Buy rating on the stock. This adjustment follows the recent GE Vernova's Investor Day, which took place on Tuesday, March 6, 2024, in New York City.
The event featured presentations from Scott Strazik, CEO of GE Vernova, Ken Parks, CFO of GE, and other management team members. The discussions highlighted the significant strides the company has made in transforming its operations and the promising future that lies ahead. The analyst expressed confidence in the management's ability to capitalize on the current trends in electrification and decarbonization, which are expected to drive investment over the next decade.
General Electric's management presented financial goals, suggesting that GE Vernova could achieve an EBITDA of over $4 billion by 2028, with the potential to reach this milestone even earlier. They also set a minimum target of $2.5 billion by 2025. Achieving these objectives would enable Vernova to grow at a compound annual rate of 15-20% over the next four years.
The analyst's optimism is also based on the belief that there is likely room for even higher performance in 2024 than currently expected. The overall assessment is that General Electric is well-positioned to benefit from these developments, leading to the maintained Buy rating on the company's stock.
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