General Electric Receives a New Rating from a Top Analyst

By Jason Carr

In a report released yesterday, Christopher Glynn from Oppenheimer assigned a Sell rating to General Electric (NYSE: GE). The company’s shares closed yesterday at $19.02, close to its 52-week low of $18.75.

Glynn commented:

“GE guided 2-7% Industrial segments OP growth for 2018 (vs. revised basis for 2017/ revenue recognition standard), with adjusted EPS of $1.00-1.07 vs. our prior $1.15 in-line estimate. GE switched to adjusted EPS from “Industrial operating EPS + GEC verticals.” New basis still excludes non-operating pension; changes now reflect (1) inclusion of other GEC continuing operating costs (reduces 2017 basis by $0.06-0.09, estimate lowers 2018 basis by additional $0.05+ from non-repeat of tax benefits), (2) revenue recognition standards change (lowers 2017 basis by $0.16), and (3) excluding restructuring/gains (raises 2017 basis by $0.24). As a result, adjusted 2017 EPS guidance of $1.04-1.12 compares to prior basis $1.05-1.10.”

According to TipRanks.com, Glynn is a top 100 analyst with an average return of 12.4% and a 69.3% success rate. Glynn covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Honeywell International, and Rockwell Automation Inc.

Currently, the analyst consensus on General Electric is Hold and the average price target is $24.33, representing a 27.9% upside.

In a report issued on November 1, J.P. Morgan also maintained a Sell rating on the stock with a $17 price target.

Based on General Electric’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $31.22 billion and quarterly net profit of $1.82 billion. In comparison, last year the company earned revenue of $29.07 billion and had a net profit of $2.42 billion.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GE in relation to earlier this year.

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