Barclays: We Still Love GE

In a report published Monday, Barclays analysts maintained an Overweight rating on

, while raising the price target from $32 to $33, after the company reported its 1Q15 results. The company's core growth in the first quarter, at 3 percent, was 100 bps short of the analysts' expectations. However, it was better than the 2 percent growth reported by General Electric's large-cap peer,

. General Electric reported industrial op margins of +120 bps, significantly better than expectations, suggesting that the company's cost cutting initiatives continue to gain momentum. Industrial EPS growth was robust, at 14 percent. "Bears will point to weak orders (-3%) and cash flows (CFOA -23%), but GE blamed weakness on order timing (and expects a rebound in orders in 2Q / stronger cash flow as the year progresses) and so we'll await 2Q for confirmation," the analysts wrote. In the report Barclays noted, "…we're encouraged by management commentary that inbound interest has been high, from both bank and non-bank players (e.g. sovereigns). We see a realistic scenario where GE is able to monetize these assets north of base case at 1x book, and at a quicker pace than the 3-year time frame to which they are guiding (we're modeling all asset sales to complete by year-end 2016 but earlier is likely). " The analysts expressed "a high degree of confidence" in General Electric's current management team, which is focused on shareholder value creation. Despite this, the company's share price does not "appear to be pricing in much in the way of execution." General Electric's share price plunged about 4.5 percent in a week and the analysts consider the current price as "an attractive entry point." "FY guide reiterated (core growth +2-5%, Industrial EPS $1.10-1.20); given the challenging (deteriorating?) macro, we view this as a bullish signal. Note that GE and HON only two companies so far to not lower FY guide," the report added.