According to the Futu Securities app, Jefferies Financial initiates coverage on GE Vernova (GEV.US) with a "buy" rating and a target price of $261, which is the highest on Wall Street. It is also listed as the top pick in the clean energy sector, partially due to the company's renewable natural gas business. As a result of this news, GE Vernova's stock price rose 3.7% on Wednesday, reaching a historical high of $204.19.

Jefferies analyst Julien Dumoulin-Smith stated that the positive estimate revisions and conservative guidance will set GE Vernova apart from its peers. He predicts that GE Vernova's EBITDA for the fiscal years 2025 and 2026 will be $3.5 billion and $4.7 billion respectively, while the market expectations are $3 billion and $4.2 billion respectively.

Dumoulin-Smith stated that GE Vernova was spun off from General Electric and "happened to catch the strong demand for natural gas power generation", noting that the company is "fortunate to see a surge in base load power demand to meet the load of data centers."

The analyst mentioned that GE Vernova "will benefit from higher sales volume and higher profit margins, which is a rare combination, but due to its oligopolistic nature in many markets in the United States, this combination is evident." He also pointed out that the cost reduction in the wind power business is another factor for better-than-expected EBITDA.

Dumoulin-Smith also expects GE Vernova to start paying moderate dividends and conduct share buybacks worth billions of dollars, "which demonstrates capital discipline, and considering the company's tradition, it is a welcome direction."

According to TipRanks data, overall, Wall Street analysts are bullish on GE Vernova, with a "strong buy" rating and an average target price of $206.05, which is 3% higher than the current level. Just last week, analysts from Morgan Stanley and William Blair also gave the stock a "buy" rating.