UBS Raises Price Target on General Electric (GE) to $37 Following 2Q

UBS reiterated a Buy rating on General Electric (NYSE: GE), and raised the price target to $37.00 (from $34.00), following the company's 2Q earnings report.

Analyst Shannon O'Callaghan commented, "2Q orders were down 16% organically, driven by a 30% organic decline in equipment orders, but we think investors should consider GE's lumpy comps. The 2Q organic equipment order comp was +18% but the 3Q comp will be -40%. The 2Q to 3Q equipment order comps go from +40% to +13% in Power, +37% to -58% in Aviation, -14% to -61% in Oil & Gas, +24% to +2% in Renewables, and -19% to -95% in Transportation. Second, consider: 1) heavy duty gas turbines are expected to increase 65% in 2H and AGP's are expected to increase over 50% in 2H, driving a 15% increase in Power organic revenue (1H was -6%); and 2) Oil & Gas organic revenues are expected to decline 7% in 2H versus -18% in 1H on easing comps while O&G cost savings ramp from $280M in 1H to $800M for the year, implying $500M+ in 2H."

For an analyst ratings summary and ratings history on General Electric click here. For more ratings news on General Electric click here.

Shares of General Electric closed at $32.06 yesterday.

You May Also Be Interested In

• Incyte (INCY) PT Raised to $105 at Truist Securities
• Kroger (KR) PT Lowered to $63 at UBS as Execution Challenges Persist
• Definium Therapeutics Inc (DFTX) PT Raised to $52 at Leerink