GE: shares wipe out gains despite broker upgrade
(CercleFinance.com) - Shares in General Electric fell sharply in early trading on Wednesday, after climbing up 2% earlier this morning, despite an upgrade by UBS.
The broker upgraded its rating on GE shares from "neutral" to "buy," with an unchanged target price of 13 dollars, saying that the group's new CEO Larry Culp "can lead a turnaround of the business."
Amongst the other reasons pushing the broker to adopt a positive stance, UBS' upside/downside skew is now favourable after the share price's recent fall, it added.
Finally, UBS thinks that uncertainty has now already peaked and the broker now expects forward corporate event catalysts and portfolio moves to improve visibility and strengthen the group's balance sheet.
The GE stock is currently trading down 1.6% at 10 dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The broker upgraded its rating on GE shares from "neutral" to "buy," with an unchanged target price of 13 dollars, saying that the group's new CEO Larry Culp "can lead a turnaround of the business."
Amongst the other reasons pushing the broker to adopt a positive stance, UBS' upside/downside skew is now favourable after the share price's recent fall, it added.
Finally, UBS thinks that uncertainty has now already peaked and the broker now expects forward corporate event catalysts and portfolio moves to improve visibility and strengthen the group's balance sheet.
The GE stock is currently trading down 1.6% at 10 dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.