- RBC capital Analyst Deane Dray reiterated an outperform rating on shares of General Electric Company GE and raised the target price to $98 from $93.
- In its first standalone analyst meeting, GE Healthcare reiterated its 2022 metrics in line with GE’s standing segment guidance, the analyst said. Additionally, the company’s mid-term targets were mostly as expected.
- The analyst thinks the GE Healthcare team is prepared upcoming spinoff date on January 3rd.
- Key drivers, including R&D investments in high-growth areas such as AI solutions and oncology MI/Theranostics, will grow organic revenue from ~3% in 2019-2021 to a mid-single-digit percentage over the next 3-5 years.
- The analyst said GE Healthcare appears well positioned to improve its growth and margin profile in each of its four segments while capitalizing on trends in precision care.
- The analyst mentioned the upcoming GE parent catalysts and noted that the remaining 0.4% stake in it will be divested/monetized Baker Hughes Company BKR over three years through structured forward sales and its 45.4 percent stake AerCap Holdings NV AER as points to look forward to.
- The analyst believes GE Digital is now a standalone company that could eventually spin off.
- The analyst believes that the COVID-19 pandemic should spur increased investments in remote digital technologies and enterprise software, which should strengthen GE Digital’s long-term demand trends.
- The analyst indicated that the next round of asset sales could come from the non-core power portfolio.
- also read: Why this General Electric analyst is bullish on the GE Healthcare spinoff
- Price promotion: GE shares are trading down 1.61% at $82.29 on the last check Friday.
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