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Shares of GE Vernova may have peaked — at least for now, according to Wolfe Research. The investment firm downgraded the energy stock to a peer perform rating from outperform. Analyst Nigel Coe also removed his price target of $496 on the stock. Shares of GE Vernova have surged 48% this year. GEV YTD mountain GEV YTD chart Coe wrote that he still remains bullish on the company, and attributed his downgrade to GE Vernova’s massive year-to-date gain. “This decision comes on the back of significant YTD outperformance that has led to a much more challenging valuation set up on both a relative and absolute basis,” he said. “There’s a lot to like, but a lot is already priced in.” However, in the same note Coe pointed out that GE Vernova stand out among his coverage universe for its high growth ramp potential. The company remains a top three player in three industries — gas, onshore wind, and transmission equipment — that could cement its status as a leader of the energy transition. While offshore losses and challenging price versus cost dynamics have pressured margins, Coe still sees a clear path forward to significant margin improvement for GE Vernova. He also sees the potential for continued growth in the dividend and material share repurchase activity. “Irrespective of valuation, GEV remains one of the most compelling equity stories in our coverage, with the broadest array of exposures to electrification investment, including the ongoing AI/DC build out and the emerging renaissance of nuclear power generation across the globe,” he wrote. “However, we now believe that many of the positives are adequately discounted, resulting in a more balanced relationship between risk and reward.” Coe added that in order to upgrade the stock again, he would need to see upward price momentum, revisions of GE Vernova’s 2025 and 2026 estimates, as long as continued build in the company’s backlog.
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