general-electric-analyst-says-new-ceo-contract-a-'benefit-for-ge-shares'

General Electric Analyst Says New CEO Contract A 'Benefit For GE Shares'

GE) shares traded slightly lower on Friday after the company extended the contract of CEO Larry Culp through 2024.” data-reactid=”19″ type=”text”>General Electric Company (NYSE: 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″ type=”text”>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.

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Photo credit: Momoneymoproblemz, via Wikimedia Commons” data-reactid=”36″ type=”text”>Photo credit: Momoneymoproblemz, via Wikimedia Commons

Latest Ratings for GE

Date Firm Action From To
Jul 2020 Deutsche Bank Maintains Hold
May 2020 UBS Maintains Buy
Apr 2020 Credit Suisse Maintains Neutral

See more from Benzinga” data-reactid=”41″ type=”text”>See more from Benzinga

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