Jefferies' Top Power & Utilities Stock Pick for 2026 – GE Vernova
Jefferies has reaffirmed a Buy rating on GE Vernova (NYSE:GEV) and lifted its price target to $1,210, even though the stock has fallen 30% from its April highs. The brokerage projects approximately $14.2 billion in power orders for the second quarter of 2026, which is 15% above consensus estimates. It expects the company to secure 10‑15 gigawatts of contracts in the quarter, with pricing 10‑20 points higher than in the fourth quarter of the previous year.
The firm believes GE Vernova will achieve its 110 GW order‑and‑slot backlog target by the end of 2026, a milestone it anticipates reaching already in Q2. Channel checks suggest robust demand in the large‑frame gas turbine market, countering concerns that behind‑the‑meter solutions might erode front‑of‑the‑meter turbine orders. Several industry participants indicated that positive pricing trends could persist for three to four years.
In the Electrification segment, GE Vernova recorded $2.4 billion in orders during the first quarter of 2026, with transformers identified as a key bottleneck for further development. Jefferies argues that the market is undervaluing the capital redeployment opportunities and revenue synergies stemming from the Prolec acquisition, and it sees potential for upward guidance revisions for Electrification in late 2026.
Jefferies also highlighted that the order backlog is expected to extend into 2031, providing a meaningful catalyst for future performance. Separately, Raymond James initiated coverage of GE Vernova with a Market Perform rating.