BofA analyst Andrew Obin raised the firm’s price target on General Electric (GE) to $96 from $92 and keeps a Buy rating on the shares after refreshing its sum of the parts analysis to include Vernova and GE Aerospace forecasts as well as a higher target multiple to reflect GE’s improved balance sheet. Future debt reduction will be aided by monetization of GE’s "sizeable" equity stakes in AerCap (AER) and GE Healthcare (GEHC), said the firm, which also notes that GE has made progress on its run-off insurance subsidiaries. Together, the firm sees these actions as potentially giving GE more optionality around the future of these insurance subsidiaries. In a preview of GE’s investor day, BofA added that it thinks improved international air traffic is "the largest source of upside" for GE Aerospace and that it expects the 2024 framework for Vernova’s adjusted operating profit to show "significant improvement" versus 2023 guidance.
Published first on TheFly
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