Overview
- GLJ Research issued a Sell rating arguing GE Vernova is a cyclical gas-turbine maker trading at about 38.9x forward EV/EBITDA and forecasting 2027 EBITDA of $7.42 billion, roughly 22% below Wall Street consensus.
- Bernstein defended the company’s outlook by noting that data centers made up about 38% of electrification orders while utilities comprised the rest and kept a Buy rating with a $1,298 target.
- GE Vernova shares fell about 8.5% after the GLJ report and then stabilized as most analysts continued to rate the stock a Buy.
- Institutional positioning shows modest de-risking with hedge fund ownership falling from 118 funds in Q1 to 106 in Q2 and short interest remaining low at about 3.29% of float.
- A separate commercial win — a wind turbine supply agreement with Eurus in Japan — and the timing of turbine orders and deliveries are being cited by defenders as signals of durable demand while the valuation dispute remains unresolved.