Analyst Julien Dumoulin Smith from Jefferies reiterated a Hold rating on GE Vernova Inc. and increased the price target to $668.00 from $565.00.
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Julien Dumoulin Smith has given his Hold rating due to a combination of factors influencing GE Vernova Inc.’s current and future performance. The company’s upcoming December update on FY28 guidance is expected to focus on margin improvements rather than significant revenue growth, which raises concerns about the sustainability of its premium valuation. The wind segment, in particular, is facing challenges, with expectations of declining revenue and lower margins, prompting management to implement cost-cutting measures, including workforce reductions.
Additionally, while the gas power segment shows strong order momentum and pricing improvements, the overall revenue growth beyond FY28 appears to be decelerating. This potential slowdown in growth, combined with the divestiture in the Electrification segment, has led to a reduction in revenue and EBITDA forecasts for the coming years. Despite these challenges, the company still holds potential in its Power and Electrification segments, but the outlook remains balanced, warranting a Hold rating until further clarity is provided in the December update.
In another report released on September 9, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $629.00 price target.