Faba: Downgrade GE Vernova (GEV.US) rating to "Neutral" Gas turbine production capacity constraints suppress future growth.

French bank BNP Paribas has downgraded GE Vernova's rating from "buy" to "neutral" with a target price of $1190, citing that 90% of the company's gas turbine production capacity is already contracted until the end of 2030, making it increasingly difficult to maintain growth momentum. Analyst Moshe Sutton of BNP Paribas stated that the company needs to continue to secure new orders in order to sustain growth momentum, meaning that customers need to sign on for new projects that have not yet been approved or lack power purchase agreements as a safety net. Sutton noted that GE Vernova's order backlog appears stable, with most projects already confirmed, but the situation with overseas orders is more uncertain. Furthermore, conflicts in the Middle East could result in delays for contracts worth approximately $4-5 billion from Saudi Arabia. However, Sutton added that it is premature to view this as a negative development. Sutton has given GE Vernova a neutral rating, stating "our opinion should not be interpreted as bearish." GE Vernova closed down 2.52% on Monday at $1120.23. The stock has still risen by nearly 72% so far this year.