Investing.com — BNP Paribas said GE Vernova (NYSE: GEV) met high expectations with its third-quarter results, but investor attention will now shift to the pace of gas turbine slot conversions into 2027.
The bank has a Neutral rating and a $1,090 price target on the stock.
GE Vernova raised its year-end contracted gas turbine guidance to more than 130 gigawatts from more than 125 GW, in line with buy-side expectations. New orders totaled 16.6 GW, of which 13 GW came from slot conversions, above investor expectations of 10 to 12 GW.
“We expect slot conversions to be topic #1 over the next few quarters,” BNP analyst Moses Sutton wrote.
He said conversions will need to rise materially each quarter into the first half of 2027, as 62 GW of slot additions from late 2025 through mid-2026 approach their conversion deadlines.
BNP also flagged rising construction costs, with new combined-cycle gas turbine build costs heading toward $4,000 per kilowatt, mainly driven by labor and engineering costs. It warned that higher costs could raise delay and regulatory risks for projects.
“Ultimately, turbine pricing is secondary if the project cannot get over the finish line on-time, or at all,” Sutton added.
On the electrification side, GE Vernova acquired Trench Group, a high-voltage equipment specialist. BNP said the deal adds $5 billion to the segment’s $46.1 billion backlog and is accretive to margins.
BNP said much of the quarter was priced in, and it views flat to modestly higher shares as reasonable.
“In a vacuum, this is no doubt a solid quarter but investors turn to the pace of conversions and slot adds in ’27,” the bank stated.
Original Article
GE Vernova meets high bar, but slot conversions now in focus: BNP Paribas
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