Shares of clean energy company GE Vernova (NYSE:GEV) fell in today’s trading session after Morgan Stanley analyst Andrew Percoco started new coverage with a Hold rating and a $167 price target.
The analyst had good things to say about the firm. He believes it’s well-positioned to benefit from secular tailwinds as economies transition to cleaner energy. In addition, profitability and cash flow should improve as GE Vernova improves its operational efficiencies.
However, the company did receive a crucial knock that likely led to the Hold. Indeed, Percoco believes GEV is trading at a premium valuation and pointed to its EV/EBITDA multiple of 15.5x 2025 estimates. For reference, its peers have a multiple of 9.6x.
Is GEV a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GEV stock based on seven Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 18% rally since being spun off in April, the average GEV price target of $165.70 per share implies 2.49% upside potential.
