FXEMPIRE
All
Ad
Advertisement
Advertisement
Vladimir Zernov
Add to Bookmarks

General Electric Video 04.03.21.

General Electric Stock Gets A Boost From Analyst Upgrades

Shares of General Electric have started the year on a strong note and gained about 25% year-to-date. Today, the stock tested multi-month highs at the $14 level after Morgan Stanley upgraded the company’s shares and changed its price target from $13 to $17.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Morgan Stanley believes that the upcoming investor day presentation, which is scheduled to take place on March 10, will serve as an additional upside catalyst for the stock.

Earlier, UBS increased its price target for General Electric stock from $14 to $15 which also provided significant support to the company’s shares.

In late January, General Electric released its fourth-quarter report which beat analyst estimates on both earnings and revenue. The company delivered solid cash flow performance, and the market continued to buy the turnaround story.

Advertisement

What’s Next For General Electric?

The current rally of General Electric stock started back in October when traders began to pay more attention to cyclical stocks. The rally continued month after month and pushed the company’s valuation to high levels. Currently, General Electric shares are trading at more than 25 forward P/E for 2022 which looks like a rich valuation for an estabilished cyclical company.

However, the market believes that the upcoming U.S. economic stimulus package and the ultimate improvements on the coronavirus front will provide enough support to the company’s business. In addition, General Electric’s performance is expected to improve in the next several years which is bullish for the stock.

The near-term fate of General Electric stock will depend on whether cyclical stocks will remain strong amid inflation fears, which are highlighted by the recent increase in the U.S. government bond yields.

If the market continues to buy cyclical stocks, General Electric stock will have a great opportunity to develop additional downside momentum as the company also has internal upside catalysts.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker