What Do Wall Street Analysts Think of GE?



Analyst recommendations for GE

General Electric (GE) has a Wall Street analyst consensus rating of “buy.” Of 20 analysts surveyed by Bloomberg, 12 gave the company a “buy” rating, while eight gave it a “hold” and none gave it a “sell” rating. Interestingly, analysts have given a price target of $33.13, which is 17% above the closing price of $28.24 on January 22, 2016.

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GE’s recent ratings

Barclays (BCS) has given GE stock an “overweight” rating with a price target of $34 on January 25, 2016. The price target implies 20.3% potential appreciation.

RBC Capital Markets (RBC) gave GE stock an “outperform” rating with a price target of $33 on January 25, 2015. The price target implies a ~16.9% potential appreciation over the closing price on January 22.

Credit Suisse (CS) also gave GE an “outperform” rating with a price target of $34 on January 22. This implies a 20.4% potential price appreciation.

What do the analyst recommendations mean?

Interestingly, no Wall Street analyst has given GE a “sell” rating. That’s different than a few quarters ago. This could be a positive sign, as GE’s strategic priorities for General Electric Capital Corporation (or GECC) asset sales are ahead of plan with deal pricing above expectation.

Industrial simplification, product strategy, and building relationships have also helped inch up GE’s margin in a slow growth environment. GE has reaffirmed its 2016 EPS target and expects to return ~$26 billion to shareholders. The company is relatively better placed now than a year ago. How much will a leaner organization incrementally give its shareholders apart from dividends (VIG)? Investors will just have to watch and wait.


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