GE Healthcare Technologies Inc (NASDAQ: GEHC) is in the spotlight today after unveiling new AI tools designed for oncologists.
The medical technology company has launched a solution called CareIntellect, aimed at helping doctors efficiently sift through healthcare data, which is often overwhelming and contributes to burnout.
However, Deutsche Bank is currently recommending shares of GE Vernova Inc (NYSE: GEV) over GE Healthcare.
Analyst Nicole DeBlase is bullish on GE Vernova, the energy equipment manufacturer, despite its stock having already more than doubled since the start of 2024.
GE Vernova stock is headed for $354
Nicole DeBlase assumed coverage of GE Vernova stock with a “buy” rating and announced a price target of $354 that indicates potential for another 30% upside in her research note today.
She expects the New York-listed firm to benefit as investments continue to flow into power-generating assets on increasing electricity consumption due to “electrification of all things, the proliferation of AI data centers, decarbonization, and aging existing grid infrastructure.”
The analyst is convinced that GEV will offer best-in-class profits and revenue growth against such a backdrop. Deblase particularly mentioned a favorable mix of revenue and margin expansion in the company’s electrification business in her research note on Monday.
Nonetheless, GE Healthcare remains a more suitable pick for income investors as GE Vernova does not currently pay a dividend versus 0.13% yield coupled with GEHC at writing.
What else could help GEV share price?
GE Vernova has a big enough wind turbine business as well that Deutsche Bank says stands to materially benefit in the coming years. Wind accounts for just 7.0% of the world’s electricity today but is expected to hit 25% by 2040.
On Monday, the investment firm attributed some of its optimism on GEV also to its gas power segment which is quickly becoming a growth story.
Gas turbine orders are increasing amidst higher electricity demand.
In response, “GE Vernova is increasing its HDGT manufacturing capacity from 55 to 77-80 units/year by 2026,” analyst Nicole DeBlase told clients on Monday.
She expects that to eventually lead to an increase in service orders/backlog.
The bullish call on GE Vernova stock arrives only days before it’s scheduled to report its financial results for the third quarter. The consensus is for the company to improve its revenue by 10% to $8.92 billion and earn $134.5 million in Q3.
In September, GEV said its revenue will likely come in close to $35 billion in 2024. Our analyst Crispus Nyaga is also bullish on GE Vernova shares for the long-term.
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