GE Vernova T&D shares may rise 36% as Nomura flags HVDC pipeline

Poland's SGE, a developer of small modular reactors (SMRs), signed a memorandum with GE Vernova, Hitachi, and Samsung C&T to accelerate BWRX-300 SMR deployment in Europe. SGE plans to build 26 units in Poland and 14 in the UK, aiming to combine American technology, Japanese and Korean industrial strength, and European capabilities. SMRs offer scalable, low-carbon power solutions, gaining traction amid Europe's energy security concerns.

GE Vernova shares fell 1.3% to $939.62 on Thursday. CEO expects backlog to reach $200B by early 2027, up from $176B. Strong demand for turbines and grid equipment noted, but execution remains key for investors. GF Score is 23/100, with financial strength highlighted.

GE Aerospace (GE) is acquiring Consolidated Precision Products (CPP) for $11.75 billion to address supply-chain bottlenecks. CPP, a major supplier of precision castings, generates about $2 billion in revenue annually and is critical for GE's engine production. GE aims to increase CPP's output and improve efficiency, though the deal's high cost and potential impact on non-GE customers remain concerns.

Motilal Oswal Financial Services Ltd maintains a BUY rating on GE Vernova T&D India Ltd (GVTD) with a target price of INR5,100. The company's recent HVDC project wins boost order book to over INR300b, providing 4-5 years of revenue visibility. GVTD expects strong growth in transmission orders and plans INR10b capex. Revenue, EBITDA, and PAT are projected to grow at 26%, 24%, and 24% CAGR respectively over FY26-29E.

Jefferies lowered its price target for GE Aerospace from $455 to $435 but maintained a buy rating. The stock, currently at $321.30, has seen a 0.65% increase today and a 4.29% rise over the past year.

GE Vernova signed a contract with Egyptian Electricity Holding Company to extend the life of five gas turbines at power plants, adding 13-15 years of operation. The deal covers 1,250 MW capacity and runs from 2028 to 2035. GE Vernova also has a separate deal for upgrades at Banha and Nubaria plants. The company supplies 60 turbines in Egypt, totaling 10 GW of capacity.