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Fly News Breaks for November 21, 2017
Nov 21, 2017 | 08:48 EDT
Deutsche Bank analyst John Inch believes General Electric should trade at a valuation discount given its "still aggressive" accounting, cash flow and debt pressures, and the potential for additional lawsuits. The analyst remains surprised by management's "upbeat tone/pitch." GE continues to call 2018 a "reset" and "trough" year even though billions of dollars of cost savings are expected to flow into numbers next year from downsizing and other restructuring actions, Inch tells investors in a research note. These costs are no longer going to run through the presentation of earnings as GE adopts a "more aggressive adjusted earnings" presentation framework, the analyst adds. He feels GE has been asserting the strength of its portfolio excluding Power, while pointing to cash flow and profit upside, "despite the recent collapse in both financial measures." The analyst cut his price target for the shares to $15 from $18 and reiterates a Sell rating on General Electric. The price target represents the lowest among those published by Wall Street sell-side analysts. The stock closed yesterday at $17.98.
News For GE From the Last 2 Days
Oct 29, 2020 | 07:12 EDT
Goldman Sachs analyst Joe Ritchie raised the firm's price target on General Electric to $11 from $10 and keeps a Buy rating on the shares. The stock closed Wednesday up 32c to $7.42. The company reported an "all around strong quarter" with a large free cash flow beat and "encouraging" Q4 free cash flow outlook of at least $2.5B, Ritchie tells investors in a research note. The results underscore management's ability to execute well, reduce costs and deliver free cash flow despite a challenging environment, says the analyst. Ritchie believes greater than $2.5B free cash flow is achievable and that GE is the "ultimate self-help, vaccine leveraged story in Industrials."
Oct 29, 2020 | 07:03 EDT
Deutsche Bank analyst Nicole DeBlase raised the firm's price target on General Electric to $9 from $6.81 and keeps a Hold rating on the shares. The analyst views GE's Q3 as a "step in the right direction towards a turnaround, after COVID forced the company to take several steps back" in the first half of 2020.