BofA update shows where active managers are putting money
Investing.com - Guggenheim downgraded GE Vernova (NYSE:GEV) from Buy to Neutral on Monday, removing its previous $600 price target. The stock, currently trading at $639.29, sits near its 52-week high of $651.22, after posting an impressive 273% return over the past year.
The research firm stated that GE Vernova’s current stock valuation fully reflects even the substantially above-consensus estimates that Guggenheim published in its latest note. According to InvestingPro data, GEV trades at significant premiums with a P/E ratio of 155.5x and an EV/EBITDA multiple of 77.6x.
Guggenheim acknowledged that GEV’s valuation remains attractive for investors willing to focus on 2029 and beyond, but cited concerns about the extended timeframe required to reach that outcome.
The downgrade was also influenced by GE Vernova’s "substantially higher valuation on EBITDA and free cash flow through 2028," according to the research note.
Based on these factors, Guggenheim concluded that GEV no longer offers an attractive risk/return profile, prompting the rating change from Buy to Neutral.
In other recent news, GE Vernova reported strong quarterly earnings results, which led the company to raise its full-year guidance. The Power segment notably achieved 9% organic growth and a 55% incremental margin. UBS reiterated its Buy rating and maintained a price target of $614, highlighting these strong operating results. BMO Capital also raised its price target to $690, citing signals of power market tightening as a key factor, and maintained an Outperform rating. Additionally, BMO reiterated its Outperform rating with a new price target of $631, based on strong results and order flows. Citi increased its price target to $670, maintaining a Neutral rating, and noted the modest upside to GE Vernova’s 2025 outlook. Jefferies followed suit by raising its price target to $620, while holding a Hold rating, after the company’s second-quarter results and strong management commentary. These developments reflect positive momentum and analyst confidence in GE Vernova’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.