Just yesterday, industrial giant GE (NYSE:GE) made its case for GE Aerospace, which will be rolling out in just a few weeks. That news was good enough to send shares spiking. However, it only got better today, as the gains continued following some very positive analyst commentary. GE was up modestly in Friday afternoon’s trading.
JPMorgan, via analyst Seth Seifman, pumped up its analysis, raising GE from Neutral to Overweight and hiking the price target from $166 per share to $180. All that Seifman needed was the latest investor day event, which made it clear that “…GE is the premier large cap name in commercial aero with regard to the business; where that business is in the cycle; the balance sheet; and the management team.” The only problem that GE is facing right now is valuation. Some of these high-quality elements are actually already priced in, but since no other problems appear to be present, further upside really isn’t out of line.
It Gets Better
While GE Vernova is working to improve its power generation, and GE Aerospace is poised to make a killer case for aircraft engines, we can’t forget about GE Appliances. Recently, the Profile and Cafe smart ovens are actually getting an upgrade: a food recognition feature. Basically, the ovens will be able to—in at least some cases—recognize what you’re trying to cook and will set itself accordingly.
An included “pizza mode” will basically prevent you from accidentally scorching your pizza in the oven because it will shut off when it’s cooked correctly. Currently, only five such modes are available, so forget about a perfectly broiled steak after pan-searing for now. But further modifications will likely be forthcoming.
Is GE Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GE stock based on 12 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After an 84.34% rally in its share price over the past year, the average GE price target of $166.69 per share implies 1.14% downside risk.
