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Investing.com -- Jefferies has downgraded GE Vernova (NYSE:GEV) to Hold from Buy, noting that the stock’s valuation already prices in much of the optimism around the company’s growth prospects.

In a note to clients, the broker’s analysts said the “current price adequately reflects premium” on their above-consensus 2028 estimates.

With GE Vernova trading at a 15% enterprise value (EV) to fiscal year 2028 (FY28) EBITDA premium compared to electric equipment peers, “we no longer believe it is obvious that there is Power upside to the current valuation,” analysts led by Brian Russo noted.

GE Vernova has been one of the top performers in the industrial space, with shares up more than 40% year-to-date and tripling since the IPO. However, Jefferies now sees a more balanced risk/reward following this re-rating.

“The run may not be over, but incremental multiple expansion could require long-dated visibility,” the analysts wrote.

The brokerage raised its price target to $517 from $427, supported by stronger estimates for the Power segment. The updated target represents just 7% upside from the last close, making it the third-highest target among analysts tracked by Bloomberg.

Jefferies’ revised valuation continues to apply a 20% premium to peers on FY28 Power EV/EBITDA, reflecting GEV’s leading position in the gas turbine market and anticipated service-driven margin expansion.

Still, the analysts warned that “it is difficult to justify higher relative premiums for more near-peak estimates.” Despite modeling Power segment margins reaching over 25% in the 2030s, the note flagged that the extent and durability of current pricing trends remain uncertain, especially beyond 2028.

While long-term demand visibility is underpinned by electrification and data center trends, Jefferies analysts emphasized that “there is just not as much upside implied by the current valuation.”

They also said that small modular reactors (SMR) represent a promising, but longer-dated, opportunity.

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