Analysts Cut General Electric Price Target Post Q4 Results

Analysts Cut General Electric Price Target Post Q4 Results

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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