BofA Securities analyst Andrew Obin expressed his views on General Electric Company's
Today, the company reported adjusted revenue of $18.5 billion (+13% Y/Y organically), beating the consensus of $17.42 billion, and adjusted EPS was $1.03, beating the consensus.
The analyst says that, compared to their estimates, both Aerospace and Vernova businesses showed revenue and margin growth.
For Q1, General Electric expects to report an adjusted EPS of $0.60 to $0.65, versus $0.72 consensus and within analysts' estimate of $0.63.
For FY24, the company sees GE Vernova deliver revenue of $34 billion-$35 billion (vs. $33.1 billion estimate), and GE Aerospace expects adjusted revenue to grow low double digits or more (vs. 13.7% consensus).
Also, the company plans to spin off Vernova in early April and is due to host investor days in March.
Overall, Obin writes that GE is making operational improvements and lowering structural costs, and the pending spin-off of Vernova can lead to a re-rating in the near future.
The analyst estimates EPS of $4.22 (vs. $4.61 estimate) in FY24 and $5.24 (vs. $5.99 street view) in FY25.
The analyst maintained a Buy rating with a price target of $135 on the stock thanks to backlog visibility and improving FCF trends.
Price Action: GE shares are trading higher by 0.06% at $131.32 on the last check Tuesday.
