- RBC Capital analyst Deane Dray reiterated an Outperform rating on the shares of General Electric Company (NYSE:GE) and raised the price target from $93 to $$98.
- In its first standalone analyst meeting, GE Healthcare reiterated its 2022 metrics, in line with GE’s standing segment guidance, said the analyst. In addition, the business’ medium-term targets were mostly as expected.
- The analyst thinks the GE Healthcare team looks ready for its upcoming Jan. 3 spinoff date.
- Key drivers, including investing in R&D in high-growth areas like AI solutions and Oncology MI/Theranostics, are seen boosting organic sales from ~3% in 2019-2021 to a mid-single-digit percentage over the next 3-5 years.
- The analyst said GE Healthcare looks well positioned to improve its growth and margins profile in each of its four segments while capitalizing on precision care trends.
- Mentioning the upcoming GE Parent catalysts, the analyst noted exiting/monetizing its remaining 0.4% ownership of Baker Hughes Company (NASDAQ:BKR) over three years using structured forward sales, as well as its 45.4% stake in AerCap Holdings N.V. (NYSE:AER) as points to look forward.
- The analyst believes GE Digital is now a standalone business that could eventually spin out.
- The analyst thinks the COVID-19 pandemic should spur increased investments in remote digital technologies and enterprise software, which should bolster GE Digital’s long-term demand trajectory.
- The analyst specified that the next round of asset sales could come from the non-core Power portfolio.
- Also Read: Why This General Electric Analyst Is Bullish On Heels Of GE Healthcare Spinoff
- Price Action: GE shares are trading lower by 1.61% at $82.29 on the last check Friday.
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