The electricity equipment giant priced as a software stock? GE Vernova (GEV.US) faces a short attack from GLJ; Bernstein responds: It's not just data centers, utilities are the real trump card.

According to Zhitong Finance APP, after a sharp decline on Monday, GE Vernova (GEV.US) stabilized on Tuesday. However, market debates surrounding this power equipment giant are intensifying: on one side, GLJ Research has issued a "sell" rating with Wall Street’s lowest target price of $470, while on the other, Bernstein reiterated its "buy" rating and insists the company is still "wired to win."

On Monday, GE Vernova closed down 8.6%, leading declines in the U.S. power infrastructure sector, and continued its downward trend of the past month. Even after Monday’s plunge, the stock is still up about one-third year to date, but has fallen 16% in the past month. On Tuesday, the stock rose 0.9%, temporarily halting the decline.

Bear Raid: Cyclical Stock Priced Like a Software Company

The immediate trigger for the sell-off was GLJ Research’s downgrade of the stock to "sell" and a target price of $470, the lowest on Wall Street. In his report, GLJ analyst Gordon Johnson wrote bluntly that GE Vernova is "a cyclical gas turbine manufacturer priced as a long-term compound growth stock." He believes the market is fundamentally mismatching the company’s valuation.

Johnson points out that GE Vernova "is a cyclical industrial firm valued in line with software companies." He mentioned that the stock’s forward EV/EBITDA multiple is 38.9x, nearly four times the valuation of Micron Technology (MU.US), whose earnings similarly depend on industry supply and demand dynamics outside of its control.

"In most analysts’ lifetimes who cover this stock, gas turbines have already gone through two full boom-bust cycles. The market is assuming it’s different this time. We think they’re coming to that conclusion too early," Johnson wrote.

He also sounded a warning from an order cycle perspective: GE Vernova’s order-to-delivery cycle is now extended to 4 to 5 years, with high-premium orders not materializing until 2029 and cycle risks set to concentrate in 2030. Johnson asserts that all orders placed in 2026 and 2027 will be delivered in 2030-2031, by which time his supply model shows effective industry capacity at 104 to 113 GW, while order volume is only 88 to 90 GW. This supply-demand gap suggests the current long-term growth narrative favored by the market may face challenges from overcapacity and a cyclical reversal.

Additionally, investors worry that a rebound in AI spending sentiment may expose GE Vernova to risks of order cancellations. Previously, power demand driven by AI data centers was seen as a key growth engine for the company, but if tech giants slow down capital expenditures, whether related orders materialize is now in the spotlight.

Bulls Strike Back: It's Not Just About Data Centers—Utilities Are the Mainstay

In response to GLJ’s pessimism, Bernstein analyst Sunaina Ocalan stepped in on Tuesday to voice support. She reiterated her "buy" rating on GE Vernova, with a target price of $1298, stating the company is still "wired to win"—possessing the genes for success.

She emphasized that GE Vernova’s story "is not all about data centers."

Ocalan provided key data in her report: In the first half of 2026, GE Vernova’s data center orders amounted to $5 billion, roughly 38% of electrification orders; the remaining 62% was driven by utilities. She believes utility spending should continue to grow, buoyed by investments in grid reliability and resilience.

"A slowdown in data center demand may ease generation bottlenecks, but does little to resolve existing grid constraints," Ocalan wrote. In other words, even if AI data center construction cools, modernization and strengthening of the aging power grid will still provide lasting demand support.

From a broader Wall Street perspective, Bernstein is not alone in its optimism. According to FactSet, nearly 80% of analysts covering GE Vernova rate it as a "buy." Jefferies also expressed a positive outlook in a report last Friday, noting that as power demand grows and GE Vernova’s installed base expands, its parts and service revenue should also rise accordingly.

Order Momentum Continues: Japanese Wind Power Agreement Lands

Amid fierce capital market debates, GE Vernova appears to be addressing market skepticism with new orders. On Tuesday, the company announced it had signed an agreement with Eurus Energy Holdings to supply seven 4.2 MW, 117-meter wind turbines for the 29.4 MW Eurus Hiyamizutouge wind farm in Aomori, Japan. The agreement includes a two-year service contract with an option to extend for another two years.

The company said its 4 MW platform is designed specifically for Japanese wind conditions and that the related turbines have accumulated over 2 million operating hours. The project supports Japan’s goal of sourcing 36% to 38% of its electricity from renewable energy by 2030. In 2025, GE Vernova garnered 339 MW of orders in Japan; its technology accounts for about 25% of Japan’s onshore wind capacity and about 50% of installed heavy-duty gas turbine capacity. Globally, the company has over 59,000 wind turbines in operation, following a standardized "workhorse" strategy emphasizing repeatability and long-term reliability.

In addition, GE Vernova and SPIC Brasil completed the modernization of the third generator at the 1,710 MW São Simão hydropower plant in 10.3 months, less than the 12-month regulatory cap; GE Vernova leads a consortium on a broader modernization plan, investing over 1.2 billion reais and aiming to complete all six units by 2029.