Rothschild Redburn downgrades GE Vernova stock to Sell on implausible margin outlook

Published 15/10/2025, 09:40
Rothschild Redburn downgrades GE Vernova stock to Sell on implausible margin outlook

Investing.com - GE Vernova (NYSE:GEV) received a downgrade from Rothschild Redburn on Wednesday, with the research firm cutting its rating from Neutral to Sell while setting a price target of $475.00. According to InvestingPro data, the stock currently trades at $644.41 with a P/E ratio of 157, suggesting significant overvaluation relative to its Fair Value.

The downgrade comes as Rothschild Redburn concludes that GE Vernova’s current share price reflects margin expectations that are "implausibly positive in the long term," according to the firm’s analysis.

Rothschild Redburn acknowledged that timing for the downgrade is challenging amid strong thematic momentum, noting that medium-term guidance for both GE Vernova and competitors like Siemens Energy will likely rise substantially in upcoming investor events and results.

The firm expressed concern about the historically variable nature of the gas turbine market, pointing out that demand conditions reflect customer sentiment and forecasts of longer-term infrastructure requirements that can change unexpectedly.

Rothschild Redburn specifically highlighted risks related to AI-driven demand in the US market, calling it "highly unproven" as the biggest single driver, while suggesting that current market optimism could partially reverse.

In other recent news, GE Vernova has announced a quarterly dividend of $0.25 per share, payable on November 17, 2025, to shareholders of record as of October 20, 2025. Additionally, Jefferies has lowered its price target for GE Vernova to $658 from $668, maintaining a Hold rating due to expectations of a subdued third quarter. Meanwhile, Baird has maintained its Outperform rating with a $706 price target, emphasizing the potential of GE Vernova’s aeroderivative turbines. Melius Research has upgraded GE Vernova’s stock rating to Buy, setting a price target of $740, driven by increasing demand for AI and improving fundamentals. In a collaborative effort, GE Vernova and Verizon have launched the MDS Orbit industrial wireless platform to enhance utilities’ communication capabilities. This platform aims to modernize grid operations by integrating with Verizon’s cellular network. These developments reflect the company’s ongoing strategic initiatives and market positioning.

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