GE Vernova: Solid Long-Term Positioning but Valuation and Overcapacity Risks Justify Hold Rating

In a report released today, Mircea Dobre from Robert W. Baird downgraded GE Vernova Inc. to a Hold, with a price target of $649.00.

Mircea Dobre has given his Hold rating due to a combination of factors tied to GE Vernova’s market positioning and valuation. While he continues to view the company as a leading player in power generation and electrification with a solid long-term strategic role, he sees growing investor concern about future overcapacity as new competitors add turbine capacity. With GE Vernova and its major peers already able to supply substantial heavy-duty turbine volumes, he expects incremental capacity in the industry to pressure pricing on new orders later in the decade, even though the company should still be able to at least meet current earnings and margin expectations, supported by its services business.

At the same time, the stock’s strong run in 2025 and its current valuation near 30x projected 2026 EBITDA suggest to him that the shares are vulnerable to multiple compression as the market reassesses the supply–demand balance. Although he believes GE Vernova deserves to trade at a premium versus peers due to its backlog strength, scale, balance sheet, and strategic flexibility, he anticipates that sentiment around oversupply could cap near-term upside. Reflecting this more cautious short-term view, he keeps his fundamental estimates unchanged but lowers his price target to a level that still embeds a premium multiple versus comparable companies, and thus moves to the sidelines with a Hold recommendation rather than advocating new incremental buying at current levels.

According to TipRanks, Dobre is a 5-star analyst with an average return of 15.8% and a 57.43% success rate. Dobre covers the Industrials sector, focusing on stocks such as Parker Hannifin, Agco, and Alamo Group.