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GE Vernova (NYSE:GEV) has seen an impressive run over the past year, but now Guggenheim Partners is advising investors to take profits. Joseph Osha, a top analyst at Guggenheim, has downgraded GEV from Buy to Hold and removed his $380 price target for the stock.
Since its spin-off from General Electric (GE), GEV has surged over 200%, driven by strong management and better-than-expected performance. Profit margins have improved, and new orders are growing faster than sales. But with the stock now trading at 26 times expected 2026 earningsup from just 10.4 times last springOsha feels the valuation has gotten too high.
While GEV has outperformed even the most optimistic analysts' expectations, Osha believes that additional gains are less likely in the near future. He's advising investors to look for other opportunities, as the rapid rise in share price makes the stock less attractive moving forward.
This article first appeared on GuruFocus.