#7 - General Electric (NYSE:GE)
General Electric (GE) RSI Score = 39.67
General Electric (NYSE:GE) is perhaps being made guilty by association. Just as the company looked like it might be getting its footing from the cost-cutting and restructuring instituted by CEO Larry Culp, the company’s aviation sector is under pressure due to the ongoing problem with Boeing (NYSE:BA).
It certainly didn’t help the company that in his address to shareholders, Warren Buffett singled out General Electric as a company that would be affected by the challenging business environment that awaits airlines and airline suppliers in the wake of the Covid-19 pandemic.
Speaking in a webcast, Buffett theorized that even in a best-case scenario, there will be too many planes in inventory. Said Buffett, “[T]he real question is whether you need a lot of new planes or not. And when you’re likely to need them,” Buffett said during the question-and-answer period. “And it affects a lot of people…It affects General Electric.”
Culp acknowledges that it’s back to the drawing board for GE’s Aviation business. However, analysts still believe in the turnaround story. They give GE a 12-month price target of $9.80, which would give shareholders a 60% gain from current levels.
About General Electric
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.
Read More - Current Price
- $183.48
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $200.93 (9.5% Upside)
