Deutsche Bank said in a note Thursday that it believes one industrial company has a "catalyst-rich outlook."
In the note, analysts initiated a Buy rating and $141 price target on the stock. They told investors that General Electric (NYSE: GE ) is a "beat-and-raise story with a catalyst-rich outlook, deep moats, and a strong management team."
"Couple this with factors like a robust install base, increasing returns to scale at GE Aerospace, improving profitability on LEAP, quarterly proof points on the turnaround story at Vernova, the ongoing cultural transformation, and double-digit FCF/sh growth, and we think the stock is well positioned to outperform —even after the big YTD run," wrote the analysts.
Focusing on the install base, the analyst said that they believe GE's install base scores well across each of the dimensions that matter: size, demographics, and performance. The install base strength "leaves GE Aerospace well positioned to grow over the long term and supports a robust terminal value," they added.
"On valuation, we think Aerospace as a standalone business can trade at a premium to comps, thanks to its status as a market leading propulsion pure-play and high FCF conversion," the analysts continued. "At Vernova, continued margin improvement, a net cash balance sheet, and IRA upside exposure should also support a premium multiple relative to its closest comps."
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.