Cowen On GE: Waiting On The Sidelines

Cowen's Guatam Khanna imitated General Electric Company GE at Market Perform with a price target of $29.00.

Khanna was most concerned about General Electric's aviation sector, which makes approximately 31 percent of industrial EBIT. "Our Aviation programmatic sales/ gross profit build-up identifies and quantifies forthcoming [...] pressures,'' said the analyst.

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This includes declining GE90 aircraft motor sales and share loss at the regional and military level. Additionally, Safran (SAFRAN UNSPON ADR EA REP 0.25 ORD SAFRY) engines are an increasingly competitive threat to GE's LEAP engine.

At the time of writing, General Electric was trading at $30.12 in Tuesday's pre-market.