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Fly News Breaks for June 19, 2019
GE
Jun 19, 2019 | 07:56 EDT
JPMorgan analyst Stephen Tusa says General Electric's Paris Air Show presentation and other information gleaned from meetings support his view of fundamental value at GE Aviation, which he notes is "well below the standing Bull case." The analyst continues to see a "pattern of numbers that are adjusted several different ways," distorting what he believes GE Aviation would look like on a "true fully loaded public company basis." GE management was optimistic on continued growth in free cash flow at Aviation, putting forth metrics that "appear encouraging," but when "tethered back to a grounded analysis" show a working capital position at less than 5% of sales versus peers at ~30%, according to Tusa. The analyst notes that management did not explain fully why 2018 free cash flow ended at $4.2B versus the initial $2.9B target. He keeps an Underweight rating on shares of General Electric.
News For GE From the Last 2 Days
GE
Mar 27, 2024 | 05:45 EDT
Wells Fargo analyst Matthew Akers raised the firm's price target on General Electric to $200 from $177 and keeps an Overweight rating on the shares. The analyst sees opportunity for GE to cut 300-500 basis points of expenses in the coming years, 2-3 times what the company committed to at its recent investor day. The firm increased estimates to incorporate higher margins. The new price target reflects a 30-times price-to-earnings multiple on aerospace and $34 per share for Vernova.