GE: shares up on broker comments
(CercleFinance.com) - GE shares jumped on Thursday on positive comments from a broker, which brightened the outlook for the troubled 126-year industrial company.
This morning Morgan Stanley initiated coverage of the stock with an "equal-weight" rating and a target price of 10 dollars.
"GE's turnaround story under new CEO Lawrence Culp has yielded some early progress on cost takeout, free cash flow stabilization, and a plan to de-lever by monetizing assets," the broker wrote in a note.
While risk/reward appears reasonable, the stock comes with an unfavorable catalyst timing and unresolved risks outside the core business, Morgan Stanley warns.
However, the broker thinks that the power unit story could prove positive in the near term.
After these comments, GE shares were up 4.6% at 9.2 dollars, outpacing the 1% rise in the S&P 500. They have risen by more than 20% year-to-date.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
This morning Morgan Stanley initiated coverage of the stock with an "equal-weight" rating and a target price of 10 dollars.
"GE's turnaround story under new CEO Lawrence Culp has yielded some early progress on cost takeout, free cash flow stabilization, and a plan to de-lever by monetizing assets," the broker wrote in a note.
While risk/reward appears reasonable, the stock comes with an unfavorable catalyst timing and unresolved risks outside the core business, Morgan Stanley warns.
However, the broker thinks that the power unit story could prove positive in the near term.
After these comments, GE shares were up 4.6% at 9.2 dollars, outpacing the 1% rise in the S&P 500. They have risen by more than 20% year-to-date.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.