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Investing.com -- Mizuho and Guggenheim both downgraded shares of GE Vernova to Neutral given its stretched valuation following a roughly 90% rise this year.
Though Mizuho (NYSE:MFG) raised its price target to $670 from $410, saying strong bookings in gas turbines and grid upgrades continue to drive earnings.
But analysts at Mizuho believes much of the improvement is now reflected in the stock.
The brokerage sees 2028 EBITDA reaching $10 billion, ahead of peers, but notes the stock trades at 16.7 times that estimate, slightly above industrial and AI-related peers.
Guggenheim also downgraded the stock, saying even its above-consensus earnings forecasts no longer justify a Buy rating given the current price.
While the firm still sees value over a longer time frame, it cited limited near-term upside and removed its $600 price target.
“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, we no longer find GEV attractive from a risk/return standpoint,” analysts said Guggenheim said
GE Vernova reported better-than-expected results for the second quarter and raised full-year guidance.
Sales of aeroderivative turbines, used in data centers, accelerated during the quarter, while backlog growth suggests potential for production expansion beyond 2028.
However, Mizuho said a formal announcement on capacity expansion is unlikely before late 2026.