And though it is based on valuation rather than corporate or macro events the downgrade is, unfortunately, from Guggenheim who have been very timely in their calls.
See for example December 5's "GE Vernova shares see 33% target hike from Guggenheim, Buy rating upheld"
In pre-market action the stock is down $57.49 (13.67%) to $363.00.
The other "quality" name we have been touting, electric infrastructure contractor Quanta Services is down $28.01 (7.82%) at $330.02.
It is days like today that are the reason we prefer quality over super-spec lottery tickets: the good ones come back (eventually) the rest may, or may not.
From Invezz via TradingView, January 24:
GE Vernova (GEV) stock downgraded: what does the analyst rating mean?
GE Vernova (GEV), a leading power-generation technology company spun off from GE Aerospace in April 2024, has been on a remarkable run, with shares surging over 200% since its debut.
Despite this impressive rally, Guggenheim analyst Joseph Osha has taken a more cautious stance, downgrading the stock from Buy to Hold in a research note released Friday.
“The easy money has been made,” Osha remarked, indicating that future stock gains may be harder to achieve.
He also withdrew his previous $380 price target.
GE Vernova shares were down by 4.46% at 3:32 pm on Friday at $418.06. This, however, is higher than the average analyst price target of $417.
Invezz finds out how the downgrade fits into the overall sentiment and forecast for the stock:
GEV share price more than tripled since the spinoff
Initially, GE Vernova faced investor uncertainty regarding its profitability and growth prospects.
The spinoff raised questions about how the stock would perform independently of its parent company.
Management, however, proved effective in addressing these concerns, delivering improvements in profit margins and securing new orders at a faster pace than sales.
The results have been striking: GE Vernova shares have more than tripled since April, cementing its status as a standout performer in the energy sector.
But the rapid pace of improvement has raised doubts about whether such growth is sustainable.
Osha highlighted that Vernova shares now trade at roughly 26 times their projected 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA), compared to 10.4 times at the time of the spinoff.
According to him, this elevated valuation makes significant future gains less likely....
....MUCH MORE