GE shares rise on analyst buy rating
Shares of General Electric popped by 1.3 percent after the market closed on Wednesday on a new analyst recommendation.
New UBS analyst Markus Mittermaier assumes coverage of the stock with a Buy rating and a $14 price target vs. the firm's previous Neutral rating and $11.50 target, according to Barron's.
|GE||GENERAL ELECTRIC CO.||102.40||-0.34||-0.33%|
The analyst points to debt repayment and better free cash flow as two main reasons for his bullish view.
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Mittermaier points out that both areas are things new CEO Larry Culp has focused on.Mittermaier says GE shares are at a "positive inflection point" into 2020 given the company's successful de-levering, "strong" estimated earnings growth in 2020 and 2021.
He also sees a tripling of free cash flow to $2.3B next year, calling the company a successful transformation.
GE's average Sell Side Rating is Bullish, while both its Seeking Alpha Authors' Rating and Quant Rating are Neutral.
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GE stock is up about 51 percent year to date and 17 percent over the past three months, but down about 80 percent from all-time highs set back in 2000.