GE) shares traded slightly lower on Friday after the company extended the contract of CEO Larry Culp through 2024.
One Wall Street analyst said Culp’s new contract eliminates one uncertainty for GE investors, and Culp’s turnaround efforts were working prior to the COVID-19 outbreak.
Andrew Obin reiterated his Buy rating and $11 price target for GE.” data-reactid=”21″>The Analyst: Bank of America analyst Andrew Obin reiterated his Buy rating and $11 price target for GE.
Prior to the outbreak, Obin said GE was making progress on several fronts, including boosting liquidity and lowering leverage via asset sales. Obin said even GE’s Power unit was potentially on track to generate positive free cash flow in 2021, although he said that would have been a major challenge.
In the post-COVID world, Obin said GE’s primary challenge is navigating the commercial aviation downturn.
“GE faces trade-offs between pricing and market share in the commercial aftermarket space,” Obin wrote in a note.
So far, he sees positive signs of GE’s focus on preventing market share losses to independent shops and heavier reliance on used parts among airlines is working.
In the medium-term, Obin said improving FCF should help drive GE’s share price higher.
2020 May Be Another Lost Year For General Electric, But BofA Is Still Bullish ” data-reactid=”34″>2020 May Be Another Lost Year For General Electric, But BofA Is Still Bullish
Latest Ratings for GE
|Jul 2020||Deutsche Bank||Maintains||Hold|
|Apr 2020||Credit Suisse||Maintains||Neutral|
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