This stock has a 'catalyst-rich outlook,' argues Deutsche Bank

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This stock has a 'catalyst-rich outlook,' argues Deutsche Bank
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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."

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