GE Vernova: Strong Long-Term Fundamentals but Limited Near-Term Upside Justify Hold Rating

Wolfe Research analyst Nigel Coe has maintained their neutral stance on GEV stock, giving a Hold rating on December 11.

Nigel Coe has given his Hold rating due to a combination of factors, balancing strong long-term fundamentals with a valuation that already reflects much of the good news. He acknowledges that GE Vernova’s updated 2028 targets – including materially higher revenue and EBITDA expectations supported by strong bookings in Power and Grid and improved pricing – provide solid justification for the company’s current earnings multiple and reinforce the long-term investment case. However, his discounted cash flow work indicates that the projected fair value by year-end 2026 is only modestly above the present share price, suggesting limited near- to mid-term upside relative to the risk and execution challenges embedded in achieving the elevated targets.

At the same time, Coe notes that while there are still potential upside drivers such as further pricing gains and productivity improvements, management’s updated plan already captures a significant portion of these opportunities, leaving less room for positive surprises. His valuation framework, which includes a wide fair value range and a path to substantially higher prices by the end of the decade, signals that the stock could be more attractive for longer-term investors on weakness rather than at current levels. As a result, he maintains a neutral stance and prefers to be a selective buyer on pullbacks rather than recommending aggressive accumulation at today’s price.

In another report released on December 11, Seaport Global also downgraded the stock to a Hold with a $0.00 price target.