GE Vernova Shares Drop After GLJ Research Initiates Sell Rating; Eaton and Quanta Services Also Fall
GE Vernova (NYSE:GEV) fell nearly 9% in midday trading after GLJ Research initiated coverage with a 'Sell' rating and set a price target of $470, significantly below the current stock price near $874. The analyst described GE Vernova as a cyclical business priced like a long-term growth company, citing concerns over its valuation relative to its order book. The sell call contributed to broader weakness in power infrastructure stocks. Eaton (NYSE:ETN) and Quanta Services (NYSE:PWR), both peers of GE Vernova with exposure to data-center electrification, also declined by 7% and 4%, respectively. While the sector was already under pressure due to concerns over slower AI-driven electricity demand growth, the sell rating on GE Vernova amplified its decline compared to other names in the group. The First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) fell about four times more than the SPDR S&P 500 ETF (SPY), highlighting sector-specific weakness. The pattern of declines suggests that the sell rating on GE Vernova was a key driver rather than just broader market rotation.
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