Analyst Ratings Coverage Change
Jefferies(Rank#16), a has released a research report which upgraded General Electric (GE) stock to a “Buy” rating and set a 12-month target price of $120. This upgrade reflects Jefferies’ optimism about GE’s growth prospects and its ability to execute its turnaround plan.
GE has had a challenging few years, with declining revenues and profits leading to a decline in its stock price. However, the company has been working to restructure its operations, divest non-core businesses, and focus on its core strengths in areas such as aviation, healthcare, and renewable energy.
Jefferies’ analysts have cited several reasons for their upgraded rating on GE. These include the company’s strong order backlog, which reflects growing demand for its products and services, and its improving margins as a result of cost-cutting measures.
General Electric’s position as a leader in the growing renewable energy industry is seen as a major growth opportunity for the company. GE’s wind turbine business is already a major player in the global market, and the company is also making significant investments in the development of offshore wind technology.
Jefferies also believes that GE’s recent agreement with the US government to provide engines for a new supersonic aircraft could be a significant growth opportunity for the company in the coming years.
Jefferies’ 12-month target price of $120 represents a potential upside of over 40% from the current trading price. This is a bullish forecast, but it reflects the analysts’ confidence in GE’s ability to execute its turnaround plan and capitalize on growth opportunities in its core businesses.
Investors should also be aware of the potential risks associated with investing in GE and the macro headwinds that all companies are currently facing in today’s environment. The company is still in the early stages of its turnaround plan, and there are risks associated with investing in a company that is still facing significant challenges. General Electric’s high debt levels and pension liabilities are also a serious concern for equity owners.
