Analyst change prompts UBS to upgrade GE to Buy from Neutral

UBS analyst Markus Mittermaier assumed coverage of General Electric from prior analyst Damian Karas and upgraded the shares to Buy from Neutral with a price target of $14, up from $11.50. The stock closed Wednesday at $10.97. The shares are at a "positive inflection point" into 2020 given GE's successful de-levering, "strong" estimated earnings growth in 2020 and 2021, and a tripling of free cash flow to $2.3B next year led by Aviation and Healthcare, Mittermaier tells investors in a research note. As a result, the analyst expects the stock's narrative to change from "significant cash drag to successful transformation." He sees 26% upside in GE shares.