General Electric stock receives upgrade from JPMorgan
Shares of General Electric (GE) are trading higher after JPMorgan issued an upgrade from Neutral to Overweight and set a price target of $180 for the company. The analyst designated GE the "premier large-capitalization name in commercial aerospace."
Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest developments for the company, discussing why the valuation presents some risk.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
[AUDIO LOGO]
JOSH LIPTON: Time to look at stocks. Moving on analyst calls of the day. Let's start with General Electric. That stock being upgraded by JP Morgan, Julie.
So this one team at JP Morgan upgrades the stock target goes to 180. Average target on the street by the way 168. They moved to overweight.
And looking ahead, they say it is clear that GE is just the Premier large cap name in commercial aerospace, they believe. And they list the reasons for that. Basically, comes down regarding the business where the business is in the cycle, the balance sheet, and they like this management team.
JULIE HYMAN: Yeah, I have to say I have-- there's a special place in my heart for analyst calls that acknowledge that they're late to the call. And that's what Seth Seifman over at JP Morgan says here. He says, listen, after this stock has outperformed the market year-to-date, and it's up.
He says, it's unlikely to be a career call. But what's past is past. Now they're coming and joining the party here.
And they're basically saying that GE is the premier large cap name in commercial aerospace. They talk about that the investor day that we got yesterday from GE highlighted the company's strength here. They do call out the valuation as a risk the fact that it already has rallied so much.
But nonetheless, they're still liking the company here. And also, talk about the company's ability to deploy cash as something that is a positive here. So, again, as we talked about yesterday, April 2 is that magical final spin out date of Vernova, which is the energy business of GE. And then the aerospace will be a standalone.
JOSH LIPTON: And by the way, that team also likes Vernova. Talks about rebounding margins and cash flow.
JULIE HYMAN: Yeah, interesting stuff. So GE is still pretty widely held. So it's one that a lot of people watch.
