$GEV

Shares of power-generation technology maker GE Vernova have been on a tear. Now it is time to take some profits, according to Guggenheim analyst Joseph Osha. 
In a Friday research note, he cut his rating on the stock to Hold from Buy and withdrew his previous $380 target for the share price. Vernova stock closed just below $438 a share on Thursday. 
The "easy money" has been made, he said, so he is moving to the sidelines. 
Few stockpickers will classify their gains as easy money. In the case of Vernova, investors couldn't be sure how the stock -- spun off from GE Aerospace on April 2 -- would be received. There were questions about profitability and growth. 
But management has been effective in running the business, with profit margins improving and new orders outpacing sales. Things have gone very well. 
Coming into Thursday trading, GE Vernova shares were up more than 200% since the spinoff. 
Still, Osha has a point. Things can't get better in the future as rapidly as they have been improving. That makes additional gains to the stock's valuation "less likely," he said. 
Vernova stock trades for about 26 times the earnings before interest, taxes, depreciation, and amortization expected for 2026. At the time of the spinoff, shares traded for about 10.4 times. 
The downgrade didn't have a big initial impact on shares. Shares opened down less than 1%. The stock slid throughout the day, however, losing 3.9% and closing at $420.49. The S&P 500 and Dow Jones Industrial Average fell about 0.3%. Friday's loss left GE Vernova stock up almost 5% for the week. 
One reason for the muted initial reaction was Wall Street's positive reaction to earnings reported earlier this week. In a report following the results, William Blair analyst Jed Dorsheimer noted record orders for gas power and electrification technologies, saying President Donald Trump's power policies should boost Vernova's gas power and nuclear businesses. 
He rates the shares at Buy but doesn't have a target for the price. 
Overall, 74% of analysts covering GE Vernova stock rate the shares at Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. 
The average analyst price target is about $417 a share, up from about $380 a share just before fourth-quarter earnings were reported. While the $37 boost is significant, the average target is still below where the stock trades. Wall Street has had trouble keeping up with GE Vernova share gains. 
The top target prices on Wall Street are in the range of $480 a share, up about 14% from Friday's closing level. 
Write to Al Root at allen.root@dowjones.com 
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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