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GE Vernova Slides on Sell Downgrade as Views Split on Premium Valuation

The bearish call sharpens debate over whether growth prospects can support the stock’s rich multiples.

Overview

  • GE Vernova fell more than 4% on Wednesday after Rothschild Redburn’s Simon Toyne cut the stock to sell with a $475 target, citing unrealistic margin assumptions and a volatile gas-turbine market.
  • Countering the downgrade, GLJ Research raised its target to $758 with a buy rating and Mizuho lifted its target to $677 while maintaining neutral.
  • Earlier this month, RBC moved the shares to sector perform with a $605 target, arguing the market already discounts long‑term earnings and warning that growth could slow later in the decade.
  • Forbes outlined a path to $900–$1,000 per share that would require revenue of roughly $55–$60 billion by 2028 and mid‑teens operating margins, while warning the current near‑50× forward P/E and ~90× EV/EBITDA leave little room for error.
  • Recent company updates include a Verizon partnership making GEV’s MDS Orbit industrial wireless platform available on Verizon’s network for grid modernization uses and a $0.25 quarterly dividend payable November 17 to holders of record on October 20.