When the analyst moves were first being reported prior to yesterday's regular-trade open, the stock dropped a bit over 1%.
Then, during the course of the day the stock rallied back to close up $3.07 (+0.48%) at $647.66:
From Barron's Updated July 28, 2025, 4:27 pm EDT / Original July 28, 2025, 9:05 am EDT:
Trees don’t grow to the sky, they say, and GE Vernova GEV +0.48% stock has risen too far for two Wall Street analysts. Still, two downgrades for shares of the power-generation technology company couldn’t keep the stock down on Monday.
Still, the move was modest to start. GE Vernova stock was down 0.5% at $641.35 in early Monday trading, while the S&P 500 and Dow Jones Industrial Average were up 0.1% and down 0.1%, respectively.
Coming into Monday trading, GE Vernova stock was up a whopping 24% over the past month, up 96% year to date, and up 272% over the past 12 months.
“Gas and grid continue to impress, but downgrade to [Hold from Buy] on
valuation,” wrote Mizuho analyst Maheep Mandloi in a Monday report.Gas is the company’s natural gas power-generation turbine business. Orders in the second quarter, reported this past week, were up 42% year over year, and profit margins improved to 16.4% from 13.8% in the second quarter of 2024. Grid is the company’s electric-grid technology business. Sales grew 23% year over year in the second quarter, and profit margins improved to 14.6% from 7.2%.
Things are good right now, but “valuation looks stretched after [the] year-to-date move,” added Mandloi. His target price, however, jumped to $670 from $412.
His downgrade comes as Guggenheim analyst Joseph Osha cut his rating on GE Vernova stock to Hold from Buy on Monday. He removed his $600 price target.
“The stock’s valuation fully reflects even the substantially above-consensus estimates that we are publishing as part of today’s note,” wrote Osha. “Valuation is still admittedly attractive if investors are willing to focus on 2029 and beyond, but considering the wait required to get to that outcome, combined with the stock’s substantially higher
valuation….we no longer find GEV attractive from a risk/return standpoint.”Osha projects 2027 earnings per share of $18.79, up from $18.01. The Wall Street consensus estimate stands at $17.74, according to FactSet.
At recent levels, GE Vernova stock was trading at about 34 times Osha’s estimated 2027 earnings. The S&P 500 trades at almost 23 times estimated earnings forecast for the next 12 months.....
....MUCH MORE
Barron's also had an interesting article on GEV's Teutonic Doppelgänger, Siemens Energy:
Missed the GE Vernova Surge? This Peer Stock Looks Ready to Rise.
Which we last mentioned July 9 and June 30:
MIT, Siemens, GE Vernova To Collaborate On Manufacturing Technologies
*****
....Interesting that GEV and Siemens are collaborating in that GE Vernova is the largest steam (electricity generation) turbine manufacturer in the world and Siemens is either #2 or #3, depending on who is counting.
As noted introducing June 15's "Electricity: "Report Says 130 New Gas-Fired Power Projects Proposed in Texas" (GEV)":If all these proposals go forward GE Vernova would probably have to buy Siemens' gas turbine business just to keep the backlog to fifteen years or less.For what it's worth GE Vernova's stock hit an all-time high this morning ($545.63) and has more than tripled since it was spun out of General Electric. $541.26 last, up $11.26 (+2.12%)
In today's (July 29) premarket trade the stock is down $0.03 (-0.00%) at $647.90.
