#7 - General Electric (NYSE:GE)
General Electric (GE) RSI Score = 39.67
General Electric (NYSE:GE) is perhaps being made guilty by association. Just as the company looked like it might be getting its footing from the cost-cutting and restructuring instituted by CEO Larry Culp, the company’s aviation sector is under pressure due to the ongoing problem with Boeing (NYSE:BA).
It certainly didn’t help the company that in his address to shareholders, Warren Buffett singled out General Electric as a company that would be affected by the challenging business environment that awaits airlines and airline suppliers in the wake of the Covid-19 pandemic.
Speaking in a webcast, Buffett theorized that even in a best-case scenario, there will be too many planes in inventory. Said Buffett, “[T]he real question is whether you need a lot of new planes or not. And when you’re likely to need them,” Buffett said during the question-and-answer period. “And it affects a lot of people…It affects General Electric.”
Culp acknowledges that it’s back to the drawing board for GE’s Aviation business. However, analysts still believe in the turnaround story. They give GE a 12-month price target of $9.80, which would give shareholders a 60% gain from current levels.
About GE Aerospace
GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft.
More about GE Aerospace- Current Price
- $222.40
- Consensus Rating
- Buy
- Ratings Breakdown
- 12 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $216.92 (-2.5% Downside)
