Investing.com -- GE Vernova's shares hit a new intraday high of over $407 on Tuesday, bolstered by investor confidence despite recent political developments.
RBC Capital analysts reaffirmed their Outperform rating on the stock in a note Tuesday, emphasizing that President Trump's recent executive order on wind leasing and permitting is unlikely to have a significant impact on the company.
The executive order temporarily bans offshore wind energy leases within the Outer Continental Shelf and pauses the issuance of new or renewed permits for onshore and offshore wind projects on federal lands, pending a review of federal wind leasing and permitting practices.
However, RBC noted that only about 5% of the total utility-scale wind energy capacity in the U.S. comes from facilities on public lands.
"We do not believe the executive order is of material significance," RBC analysts wrote. "We do not believe the announcement will have a material impact on GEV, given the limited exposure to offshore wind in the U.S. and limited onshore wind development on Federal land."
The executive order aligns with President Trump's campaign promises to foster a reliable energy economy, citing legal deficiencies as the rationale for the ban.
Despite this, RBC maintains a neutral sentiment on the broader implications for GE Vernova and reiterated its price target of $376 ib the stock.