Wall Street investment bank Guggenheim Partners is sounding the alarm on power-generation company GE Vernova (GEV), warning that the “easy money” has been made with the stock.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Joseph Osha, a five-star rated analyst at Guggenheim, says it’s now time for investors to take profits in GEV stock after it has risen more than 200% in the last 12 months. In a research note, Osha lowered his rating on the stock to Hold from Buy and withdrew his previous $380 target for the share price.
The analyst says he is moving to the sidelines with GEV stock after its incredible run over the past 12 months following its spinoff from General Electric (GE). While GEV stock has performed better-than-expected since its market debut last spring, Osha says that additional gains are “less likely” moving forward.
Strong Performance
GEV stock has ripped higher as management has been effective in running the business, with profit margins improving and new orders growing at a faster clip than sales. The strong performance by both management and the stock has surprised even the most bullish of analysts.
However, the rapid rise in the share price has pushed the valuation on GEV stock higher. GE Vernova’s stock currently trades for about 26 times earnings expected in 2026, more than double the 10.4 times it traded at last spring.
Osha says that the skyrocketing share price and valuation make GEV stock less attractive in the near-term and encourages investors to look for other opportunities in the market.
Is GEV Stock a Buy?
The stock of GE Vernova has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy and three Hold recommendations assigned in the last three months. The average GEV price target of $423.88 implies 0.35% downside risk from current levels.
