Buy General Electric Stock for 50% Upside?
General Electric could rally to the $20 to $22 range, according to one analyst
By Bret Kenwell
Nicholas Heymann, an analyst from William Blair - shares can head to the $20 to $22 range:-
1. Oil prices increasing certainly helps
2. Three new directors
3. GE's aviation and health care segments should also continue to do well.
4. Shareholder and bondholder lawsuits can be resolved without impacting financials
5. Pension obligations could shrink throughout the year.
6. Ability to generate cash flow and pare down assets is improving at a better-than-expected rate
This research note does not jive with the idea that GE needs to do a secondary offering and slash its dividend, although Cramer acknowledged that he still thinks the company may need to raise capital.
Of course, the immediate argument to owning GE stock will be on trade concerns, Cramer concluded. The anti-globalization chatter could hurt General Electric, as former CEO Jeff Immelt was very supportive of global free trade.
Source: The Street
https://www.thestreet.com/story/1451018 ... side-.html