General Electric's Expense Savings Could Surpass Company's Own Commitments

Wells Fargo's Joe O'Dea raised their price target on General Electric Co (NYSE: GE) by 13% from $177 to $200 on 2024/03/27. The analyst maintained their Strong Buy rating on the stock.

According to O'Dea, General Electric could see significant savings in the coming years, surpassing the company's own commitments made during its 2024 Investor Day on March 7. O'Dea predicts that GE could save 300 to 500 basis points on expenses, which is double or even triple the amount pledged by the company.

The analyst also noted that Wells Fargo has adjusted its projections to account for larger profit margins. O'Dea's revised valuation is based on Aerospace's 30x price-to-earnings ratio (P/E) and the firm's valuation of GE Vernova's stock at $34 per share.

It is worth mentioning that all top-rated analysts currently rate GE as either a Strong Buy or Buy, with none holding a Hold rating. Furthermore, no analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that GE's upcoming year will deliver earnings per share (EPS) of $7.99. If these predictions hold true, GE's next yearly EPS will experience a 5.4% decline compared to the previous year.

In terms of GE's stock performance, it has shown strong growth. Since the last quarterly report on December 31, 2023, the stock price has risen by 41.1%. On a year-over-year basis, GE's stock has surged by an impressive 93%. During this period, GE has outperformed the S&P 500, which has seen a growth of 32%.

Joe O'Dea, the Wells Fargo analyst behind the recent price target increase, is ranked in the top 18% of Wall Street analysts by WallStreetZen. With an average return of 9.1% and a win rate of 58.5%, O'Dea specializes in various sectors, including Basic Materials and Industrials.

General Electric Company, founded in 1892 and headquartered in Boston, MA, is renowned for its digital industrial offerings and extensive installed base spanning aircraft engines, gas turbines, wind turbines, and medical diagnostic equipment. Following the divestment of GE Transportation to Wabtec, majority stake in Baker Hughes, and sale of GE Biopharma to Danaher, the company now focuses on aviation, legacy healthcare, power, and renewable energy sectors.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.