Andrew Kaplowitz, an analyst from Citi, maintained the Hold rating on GE Vernova Inc.. The associated price target remains the same with $670.00.
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Andrew Kaplowitz’s rating is based on a combination of factors that suggest a cautious yet optimistic outlook for GE Vernova Inc. The company is perceived to be in the early stages of a significant growth phase, which could lead to substantial increases in revenue and earnings over the coming years. However, the rapid appreciation in the stock price reflects high expectations, making the current valuation challenging to justify.
Despite the positive market trends and internal improvements that could support ongoing earnings growth, there are mixed signals in certain segments like Wind. Additionally, while there is robust demand for gas turbines and electrification outside of Europe, affordability issues in Europe pose challenges. The company’s focus on long-term service revenue and operational efficiency offers potential for margin expansion, but these factors contribute to a Hold rating as the market evaluates the sustainability of these growth drivers.
In another report released yesterday, Mizuho Securities also downgraded the stock to a Hold with a $670.00 price target.