GE Vernova Shares Fall 8.6% as AI Concerns and Sell Rating Weigh on Stock
Key Takeaways
- •Johnson estimates GE Vernova trades at roughly 26 times projected 2027 Ebitda, versus about 13 times for the S&P 500, and values it at 14 times Ebitda.
- •Johnson forecasts 2027 Ebitda of $7.4 billion, below FactSet’s $9.5 billion consensus, partly because 2027 turbines were ordered at lower prices.
- •Nearly 80% of analysts covering GE Vernova rate the stock a Buy, while the average price target is approximately $1,240.
- •Eaton and Vertiv each declined about 7.6% as weakness spread across suppliers linked to AI infrastructure.
- •Jefferies recently raised its GE Vernova target to $1,185 from $1,155, citing increasing service revenue from the company’s installed turbine base.
GE Vernova Inc. (NYSE: GEV) shares fell 8.6% on Monday, September 14, to close at $874.66, significantly underperforming the broader market. The S\u0026P 500 declined 0.5%, while the Nasdaq Composite fell 0.6%.
The sell-off came as concerns about the pace of artificial intelligence development spread across the market and GLJ Research analyst Gordon Johnson initiated coverage of GE Vernova with a Sell rating and a $470 price target. That target is roughly 50% below the stock’s trading level and more than $300 below the next-lowest target on Wall Street.
The AI-related concerns followed an essay by Anthropic CEO Dario Amodei, who argued that AI capabilities are advancing faster than researchers can control them. Amodei called for a slowdown in frontier AI development and proposed placing independent safety monitors inside AI laboratories. OpenAI CEO Sam Altman, Elon Musk, and Google DeepMind CEO Demis Hassabis supported the ideas in some form.
The developments are relevant to GE Vernova because its power-equipment business is closely connected to demand from AI data centers. A slowdown in AI development could reduce demand for the electricity infrastructure supplied by the company.
GE Vernova had entered Monday’s session up 46% in 2026 and 324% over the previous 24 months.
Valuation Concerns Behind the Sell Rating
Johnson’s primary concern is valuation. He estimates that GE Vernova is trading at approximately 26 times his projected 2027 earnings before interest, taxes, depreciation, and amortization (Ebitda), compared with about 13 times for the S\u0026P 500. Johnson values the company at 14 times his own Ebitda estimate.
He also expects GE Vernova’s earnings to fall below current expectations, in part because power turbines scheduled for delivery in 2027 were ordered when prices were lower. Johnson projects 2027 Ebitda of $7.4 billion, compared with the FactSet consensus estimate of $9.5 billion.
Johnson’s outlook is a significant outlier among analysts. Nearly 80% of analysts covering GEV rate the stock a Buy, compared with the typical 55% to 60% Buy-rating ratio for S\u0026P 500 companies. The average analyst price target for GE Vernova is approximately $1,240.
Weakness Spreads Across AI Infrastructure Suppliers
GE Vernova was not the only company affected. Eaton and Vertiv, which both supply electrical equipment connected to AI infrastructure, each fell approximately 7.6% on Monday.
The decline followed a positive call from Jefferies analyst Julien Dumoulin-Smith just days earlier. On Friday, he raised his GE Vernova price target to $1,185 from $1,155, citing growing service revenue from the company’s expanding installed base of power turbines. GE Vernova shares rose 3.6% that day.
The average analyst price target remains near $1,240, well above Monday’s closing price and Johnson’s $470 target. The wide gap between the estimates leaves AI-related power demand, the timing and pricing of 2027 turbine deliveries, and growth in service revenue as the main factors shaping the competing views of GE Vernova’s outlook.
Source: CoinCentral
