Raymond James analyst downgraded shares of GE Vernova to Hold from Buy, and removed his $190 price target.
GE Vernova GEV is a relatively new stock that has nearly doubled its value since it started trading in March. The stalwart American firm General Electric GE spun it off, and it is now a $70 billion industrial company.
GE Vernova Inc. GEV shares are trading lower on Thursday. Truist Securities analyst Jordan Levy initiated coverage on the company with a Buy Rating and a price target of $300.
GE Vernova picked up its fifth new Buy rating in recent weeks while GE HealthCare Technologies picked up a new Sell rating.
GE Aerospace posted strong Q2 results with $8.2 billion in revenue and $1.20 adjusted EPS, beating analyst estimates despite supply chain challenges. The company is actively addressing supply chain issues, deploying 550 engineers to key supplier locations, and reducing LEAP shop visit turnaround times by 15%. GE Aerospace's updated guidance shows increased profit expectations and free cash flow, driven by strong aftermarket support and improved equipment profitability.
Burgeoning aftermarket sales and lower-than-expected engine deliveries are boosting earnings expectations. Long-term growth looks assured, but the valuation is looking stretched now.
GE Vernova shares picked up another Buy rating on Tuesday. That's a positive for shares.
The General Electric (NYSE: GE) stock price is firing on all cylinder this year as the transformation under Lawrence Culp continued. It has jumped by over 47% this year, outperforming the closely-watched Vanguard Industrial Index Fund (VIS), which has jumped by almost 17% this year.
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GE Aerospace will generate bundles of cash from long-term aftermarket revenue from its installed base of engines. The company's margins and profits will likely improve significantly over the medium term.
GE Aerospace is a big player in the wide-moat aviation industry. A strong outlook could drive 30% earnings growth over the next few years.
I added GE Aerospace to my portfolio due to its ultra-wide moat, market penetration, and strategic position in commercial and defense engines. GE Aerospace's leadership, backed by secular growth trends and the innovative FLIGHT DECK model, makes it a perfect fit for my portfolio. I see strong potential for shareholder value through dividends and buybacks, with continued upside as GE capitalizes on growing demand and operational efficiency.