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Tag: Vernova
The “Easy Money” Has Been Made in GE Vernova (GEV) Stock, Says Guggenheim
Wall Street investment bank Guggenheim Partners is sounding the alarm on power-generation company GE Vernova (GEV), warning that the “easy money” has been made with the stock.
Joseph Osha, a five-star rated analyst at Guggenheim, says it’s now time for investors to take profits in GEV stock after it has risen more than 200% in the last 12 months. In a research note, Osha lowered his rating on the stock to Hold from Buy and withdrew his previous $380 target for the share price.
The analyst says he is moving to the sidelines with GEV stock after its incredible run over the past 12 months following its spinoff from General Electric (GE). While GEV stock has performed better-than-expected since its market debut last spring, Osha says that additional gains are “less likely” moving forward.
Strong Performance
GEV stock has ripped higher as management has been effective in running the business, with profit margins improving and new orders growing at a faster clip than sales. The strong performance by both management and the stock has surprised even the most bullish of analysts.
However, the rapid rise in the share price has pushed the valuation on GEV stock higher. GE Vernova’s stock currently trades for about 26 times earnings expected in 2026, more than double the 10.4 times it traded at last spring.
Osha says that the skyrocketing share price and valuation make GEV stock less attractive in the near-term and encourages investors to look for other opportunities in the market.
Is GEV Stock a Buy?
The stock of GE Vernova has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy and three Hold recommendations assigned in the last three months. The average GEV price target of $423.88 implies 0.35% downside risk from current levels.
Guggenheim, a leading financial firm, recently issued a report stating that the “easy money” has already been made in GE Vernova (GEV) stock. The report highlights that the stock has seen significant gains in recent months, but may be approaching a point of diminishing returns.According to Guggenheim, investors who have already made profits in GEV stock may want to consider taking some profits off the table and re-evaluating their investment thesis. The firm notes that while GEV may still have potential for future growth, the stock may be entering a period of consolidation or correction.
Guggenheim’s report serves as a reminder to investors to always be mindful of their risk tolerance and investment goals. While GEV may have performed well in the past, it is important to stay informed and continuously reassess one’s investment strategy.
As always, it is recommended that investors conduct their own research and seek advice from a financial advisor before making any investment decisions. Stay informed, stay vigilant, and stay ahead of the market trends.
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#Easy #Money #Vernova #GEV #Stock #GuggenheimGE Vernova downgraded at Guggenheim with ‘easy money made’
https://www.tipranks.com/news/the-fly/ge-vernova-downgraded-at-guggenheim-with-easy-money-made As previously reported, Guggenheim analyst Joseph Osha downgraded GE Vernova (GEV) to Neutral from Buy and removed the firm’s prior $380 price target The revised rating reflects not only the stock’s strong recent performance, but also the firm’s belief that the pace of upward revisions in GE Vernova’s financial model is likely to slow, which makes additional upside to valuation based on EBITDA and free cash flow “less likely,” the analyst tells investors. The stock now appears fairly valued, the analyst added.
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Guggenheim analyst, Thomas Green, downgraded General Electric’s Vernova division from a “buy” rating to a “hold” rating, citing that the easy money has already been made on the stock.In a research note to clients, Green stated, “We believe that the recent surge in GE Vernova’s stock price has priced in much of the anticipated growth and positive developments in the division. While we still see long-term potential in Vernova, we believe that the current valuation is not justified and that investors may have already made the easy money on this stock.”
The downgrade comes after GE Vernova’s stock price more than doubled over the past year, fueled by strong earnings and positive market sentiment. However, Green warns that the stock may be vulnerable to a pullback as investors take profits and reassess their positions.
Investors are advised to carefully consider their investment thesis for GE Vernova and to proceed with caution in light of the recent downgrade.
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NextEra Energy Reports Mixed Q4 Results, Enters Partnership With GE Vernova For Grid Solutions
NextEra Energy Reports Mixed Q4 Results, Enters Partnership With GE Vernova For Grid Solutions NextEra Energy Inc (NYSE:NEE) shares are trading higher after it reported fourth-quarter FY24 results.
Revenue of $5.385 billion missed the estimate of $7.525 billion and adjusted EPS of $0.53 was in line with the consensus.
Operating income declined to $941 million from $2.660 billion in the year-ago quarter.
Florida Power & Light Company (FPL) segment adjusted net income declined slightly to $845 million from $846 million in the third quarter of 2023.
Meanwhile, Next Energy Resources’ adjusted earnings rose to $446 million from $361 million in the fourth quarter of 2023.
Cash flows from operating activities for the year totaled $13.260 billion, compared to $11.301 billion a year ago. As of December 31, 2024, cash and cash equivalents stood at $1.487 billion.
Outlook: For FY25, NextEra Energy continues to expect adjusted EPS of $3.45-$3.70. vs. consensus of $3.68.
Also, NextEra Energy expects adjusted EPS of $3.63-$4.00 in 2026 and $3.85-$4.32 in 2027.
The company also expects to grow its dividends per share by approximately 10% annually through at least 2026, based on a 2024 baseline. In addition, NextEra Energy’s long-term financial expectations remain unchanged.
John Ketchum, chairman, president and chief executive officer, said, “Continuing our track record of providing long-term value for shareholders, we have delivered compound annual growth in adjusted earnings per share of more than 10% since 2021 and of approximately 10% over the past 10 years, both of which are the highest among all top-10 power companies.”
”Given the strength of both of our businesses, we will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges in each year through 2027, while maintaining our strong balance sheet and credit ratings.”
Read: NextEra Energy: Charging Into Q4 Earnings — Will Clean Energy’s Powerhouse Keep Its Momentum?
During the earnings call, the company stated that it inked a framework agreement with GE Vernova Inc. (NYSE:GEV) to develop natural gas-powered generation solutions.
This partnership is expected to support multiple gigawatts of capacity for data centers, manufacturing reshoring, industrial electrification, and various energy customers, including utilities and commercial sectors.
Over the next four years, both companies plan to collaborate to identify key grid locations for new generation.
GE Vernova will provide advanced natural gas technologies and electrification solutions, while NextEra Energy will integrate renewable, storage, and gas-fired generation solutions for large energy loads.
NextEra Energy, one of the leading clean energy companies in the United States, recently reported mixed results for the fourth quarter of 2021. While the company’s revenue exceeded expectations, its net income fell short of analysts’ forecasts.In a bid to further strengthen its position in the energy sector, NextEra Energy also announced a new partnership with GE Vernova for grid solutions. This strategic collaboration aims to enhance the efficiency and reliability of the grid, ultimately benefiting both customers and the environment.
The partnership with GE Vernova signifies NextEra Energy’s commitment to innovation and sustainable energy solutions. By leveraging GE Vernova’s expertise in grid technologies, NextEra Energy is poised to lead the way in creating a cleaner and more resilient energy infrastructure.
Overall, despite the mixed Q4 results, NextEra Energy’s partnership with GE Vernova signals a promising future for the company as it continues to drive progress towards a more sustainable energy landscape.
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