Home / Markets / Industries / Industrials

Friday, November 06, 2009

GE Rallies on Analyst Upgrades

By Matt Egan

FOXBusiness

General Electric (GE) was the best-performing stock on the Dow Jones Industrial Average Friday after the conglomerate was upgraded to “outperform” at Bernstein Research.

Bernstein analyst Steven Winoker upped his rating from “market perform” on the world’s largest jet engine maker on signs GE will unload $25 billion to $30 billion of revenue over the next two to three years as it focuses on its core infrastructure businesses.

“Much of the bet on GE is a bet on the company's ability to reinvest proceeds in enterprises that add value for shareholders," Winoker wrote.

The news pushed GE’s stock up 5.8% to $15.25 Friday, outpacing a gain of just 0.2% on the blue-chip index. GE’s stock has more than tripled since tumbling to $5.72 during the depth of the financial crisis, but is still down 11% year-to-date.

GE is already in talks to unload its majority stake in media giant NBC Universal to Comcast (CMCSA), according to published reports. Winoker speculated GE could also unload its appliance unit and parts of GE Capital, its bleeding financial business.

Bernstein also lifted its price target on GE to $19 from $18. Earlier this year GE’s stock topped out at $19.75.

At the same time, Oppenheimer boosted GE to "outperform" from "perform," citing the company's stabilizing financial portfolio, Dow Jones Newswires reported. Oppenheimer also lifted its price target on GE from $17 to $18.

Fox Business Video

- The Crisis With 20/20 Hindsight
- Nov 21, 2009
  
  FOXBusiness.com LIVE
- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto