11:25 AM EST, 12/03/2024 (MT Newswires) -- GE Vernova ( GEV ) might make tuck-in acquisitions for differentiated power management technologies and subsystem suppliers and use certain cash for share buybacks and a dividend, Oppenheimer said Tuesday.

"With GE Vernova ( GEV ) shares up nearly 3x from its lows in 2024 on expectations for nearly 10% revenue CAGR for the next five years and significant operating leverage, we remain cautious that updated guidance may not reach lofty Street expectations," Oppenheimer analysts, including Colin Rusch, said in a note to clients.

The consensus calls for 5% annual revenue growth in wind business, but it could be challenging for GE Vernova ( GEV ) given the cost headwinds in offshore category and interconnection problems in the offshore business. The company is also expected to have double-digit revenue growth in electrification, which had a $21.9 billion backlog exiting Q3.

Oppenheimer has a perform rating on the GE Vernova ( GEV ) stock.

The company's shares were down 2.9% in recent trading.

Price: 328.10, Change: -9.44, Percent Change: -2.80