GE Venova (GEV 7.23%) stock notched a clear win on Monday, as its price closed the trading session more than 7% higher. Investors piled into the engineering sector veteran following a pre-earnings price target raise from an analyst. The stock's performance was notably better than that of the bellwether S&P 500 index, which rose by 1.6%.
Pre-earnings price target bump
Before market open that day, Susquehanna prognosticator Charles Minervino upped his price target on GE Venova to $740 per share from his preceding $736. Although he changed his fair value assessment on the stock, he maintained his existing buy recommendation, which was and is positive (i.e., buy).
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It wasn't a coincidence that Minervino's move came less than two weeks before the industrial company is slated to publish its third-quarter earnings release. According to reports, Minervino modified his estimates on its fundamentals on the back of recent legislative developments.
Specifically, he felt that certain provisions that were kept in the Inflation Reduction Act, such as the preservation of tax credits for qualifying work, favor GE Venova.
Sunny days
GE Venova and its peers that produce goods in this country have another advantage, as a key goal of the Trump administration is to increase manufacturing within our borders. In his research note, Minervino said he was bullish on companies with such a profile; in addition to GE Venova, he mentioned next-generation energy company First Solar.
