General Electric successfully completed the spin-off of its GE Power business just a few weeks back and listed GE Vernova as its own publicly traded company (GEV). 

Analysts are already hot on the stock as it received its first upgrade today by J.P. Morgan’s Mark Strouse. He moved his stance from hold to buy but maintained his price target of $141. He also stated that GEV should be a long-term core holding amidst a growing demand globally for electricity. 

GEV IPOd on April 2nd but has already seen its ups and downs, soaring as high as $151 before plummeting back down to $122 late last week. 

But, this pullback is precisely what prompted the upgrade from Strouse – which he attributed to early selling from GE investors who would rather allocate their capital towards the GE aerospace segment of the business, which could be more lucrative than GE Vernova which is struggling with profitability.

Strouse also said that the next few quarterly earnings reports will be crucial as the company needs to show an ability to improve margins alongside an increase in electricity demand. 

The price target he has set of $141 is roughly 24x his EPS estimate for 2025 of $5.77, which is a premium compared to the average of 19x. However, Strouse says it’s justified given the rate at which the company’s earnings are growing.

He’s not the only analyst to take a buy stance on this stock, though. RBC’s Christopher Dendrinos opened his coverage on the stock with a buy position before the spin-off was even finalized.  

The nearly 13% drop last week opened up a nice window for investors to get into GEV at a discount, but is it time to buy? We’ve taken a look at this opportunity through the VectorVest stock software and found 3 things to help you make your next move one way or the other.

GEV Has Very Poor Upside Potential, Poor Safety, and Fair Timing

VectorVest helps you win more trades with less work and stress by telling you what to buy, when to buy it, and when to sell it - all through 3 simple proprietary stock ratings. These are relative value (RV), relative safety (RS), and relative timing (RT).

Each of these ratings sits on its own scale of 0.00-2.00 with 1.00 being the average. This makes interpretation quick and easy, saving you time and leaving you to make clear, calculated decisions. 

Better yet, the system gives a buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. Here’s what we found for GEV:

  • Very Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. This offers much better insight than the typical comparison of price to value alone. GEV has a very poor RV rating of 0.35 right now.
  • Poor Safety: The RS rating is a risk indicator calculator through an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. The RS rating of 0.65 is poor for GEV.
  • Fair Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s taken day over day, week over week, quarter over quarter, and year over year. The RT rating of 0.89 is fair for GEV.

The overall VST rating of 0.69 is poor for GEV, and it’s accompanied by a HOLD recommendation for the time being. That being said, we encourage you to learn more through a free stock analysis today so you don’t miss out on this opportunity! Transform the way you trade with VectorVest today.

GE Vernova Gains 5% on First Analyst Upgrade, But Does That Mean You Should Buy GEV Already?

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VectorVest advocates buying safe, undervalued stocks, rising in price. GEV has already had a tumultuous first week on the market, but it has earned a BUY recommendation from 2 analysts so far. That being said, VectorVest says this stock is a hold with very poor upside potential, poor safety, and fair timing.

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