General Electric Q1 Print Shows Strong Orders, But One Issue Continues

General Electric Company GE reported its first quarter adjusted earnings above Street estimates. Although orders were strong, the company’s print was impacted by supply chain issues much more than anticipated, according to BofA Securities.

The General Electric Analyst: Andrew Obin maintained a Buy rating on General Electric, while keeping the price target unchanged at $132.

The General Electric Thesis: While the Aviation and Power segments reported upbeat results, the upside was offset by weakness in Renewables, Obin said in the note.

“Aviation and Power could be sources of upside in 2022…Key issues going forward are Renewables supply chain and structural margin levels at Healthcare,” the analyst wrote.

Also Read: If You Invested $1,000 In General Electric Stock At Its Pandemic Low, Here's How Much You'd Have Now

“We continue to see upside on 2022 FCF, but acknowledge this will require some supply chain improvement,” Obin mentioned. He added that the Buy rating is maintained “as we see the pending spin-off of Healthcare as a positive catalyst.”

GE Price Action: Shares of General Electric had declined by 9.87% to $81.01 at the time of publication Tuesday, according to Benzinga Pro.

Photo: Courtesy of @mjb on Flickr