General Electric Analyst Raises Price Target, Touts 'Materially Improved Balance Sheet'

General Electric Company GE Thursday revealed plans to invest over $450 million in its U.S. manufacturing facilities in 2023.

Increasing international air traffic is the “largest source of upside” for GE Aerospace, according to BofA Securities.

The General Electric Company Analyst: Andrew Obin maintained a Buy rating on GE, while raising the price target from $92 to $96.

The General Electric Company Thesis: International/Widebody is “meaningful” for the company, Obin said in the note. Adding that, "We expect military revenue growth (17% of revenue) to also be highlighted."

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“We refresh our sum of the parts analysis to include Vernova and GE Aerospace forecasts for EBITDA, net income, and FCF,” the analyst wrote. A higher target multiple is warranted for General Electric due to its improved balance sheet, he added.

In February, General Electric called $3 billion of its $6 billion outstanding in preferred shares, Obin stated. “Future debt reduction will be aided by monetization of GE’s sizeable equity stakes in AerCap (~$8bn) and GE Healthcare (~$7bn),” he added.

GE Price Action: Shares of General Electric had risen by 1.10% to $87.32 at the time of publication Monday.

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