Analysts lowered the price target for General Electric Co GE post Q4 results.
- Deutsche Bank analyst Nicole DeBlase lowered the price target to $108 (an upside of 21%) from $119 and maintained a Buy rating on the shares.
- DeBlase attributes the post-earnings selloff to weaker than expected segment income results, mainly due to widespread supply chain constraints, "noisy" 2022 earnings guidance, given the switch to one-column reporting that was not captured in Street forecasts, and investor doubts over the achievability of the free cash flow guidance of $7 billion-plus in 2023.
- The analyst continues to see significant upside based on her sum-of-the-parts analysis.
- Barclays analyst Julian Mitchell lowered the price target to $116 (an upside of 30%) from $122 and maintained an Overweight rating on the shares.
- The analyst's estimates are largely unchanged post the Q4 results, and he lowered the target to reflect peer multiples.
- Mitchell notes, after 12 months of changing reporting structures and restatements, GE's numbers "should begin to settle down, and the Street has now rebased for the go-forward basis."
- RBC Capital analyst Deane Dray lowered the price target to $108 (an upside of 21%) from $125 and kept an Outperform rating on the shares.
- The analyst mentions that the company's Q4 results were "noisy," though much of the commotion was related to its anticipated shift to one-column reporting.
- Dray further cites GE's revenue misses at Aviation and Power and the ongoing profit challenges at the on-shore wind, but he also sees upside in both the "timeline for a three-way split and the potential for value-unlocking divestitures."
- Wells Fargo analyst Joseph O'Dea lowered the price target to $102 (an upside of 14%) from $105 and maintained an Equal-Weight rating for the shares.
- Price Action: GE shares traded lower by 0.16% at $89.46 on the last check Thursday.
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