General Electric has signed a memorandum of understanding (MoU) with EVN Genco3, a Vietnamese company, to develop a liquefied natural gas (LNG) power plant in the country, Bloomberg reported.
According to the Bloomberg report, GE (GE) signed the MoU in the presence of Robert O’Brien, President Donald Trump’s national security adviser, during an event in Hanoi. The two companies will set up the plant near Ho Chi Minh city. It is expected to provide 3,600 megawatts of electricity. The first phase of the project is anticipated to be operational by 2025.
A GE spokesperson told Bloomberg, “GE will look to supply gas turbines and associated equipment and services for the project estimated at more than $1 billion over the lifetime of the project.” (See GE stock analysis on TipRanks)
On Nov. 13, Barclays analyst Julian Mitchell raised the stock’s price target to $11 (12.7% upside potential) from $9 and reiterated a Buy rating. In a note to investors, Mitchell said that given the company’s balance sheet position and free cash flow performance in 3Q, the downside “floor” of GE’s share price should be higher despite the COVID-19 headwinds. The analyst expects the company’s industrial cash flow to reach $6 billion in 2022.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys and 6 Holds. The average price target stands at $9.05 and implies downside potential of about 7.3% from current levels. Shares are down by 12.5% year-to-date.
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