Why This General Electric Analyst Is Bullish On Heels Of GE Healthcare Spinoff

Earlier this month, General Electric Company (NYSE:GE) announced plans to spin off its healthcare business.

GE Healthcare Holding LLC (GEHC) remains on track to trade independently on April 1, 2023, according to Oppenheimer.

The Analyst: Christopher Glynn upgraded the rating for General Electric to Outperform, while keeping the price target unchanged at $104.

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The Thesis: There is strong momentum in aviation, with a recovery in the aerospace industry, Glynn said.

General Electric has exhibited “strong execution amidst widespread industry supply-chain challenges impacting the commercial business and internal production challenges serving military markets,” the analyst added. “At Power, consistent and broad-based profitability improvement affirms intact turnaround trajectory/runway, even if mediocre absolute profitability as yet.”

“Potential catalysts include LTC/insurance separation and sustained growth break-out at $4.2B/’22E military.”

GE Price Action: Shares of General Electric had risen by 1.52% to $85.95 in pre-market trading on Tuesday.

Next: GE Reports Pricing Of $8.25 Billion Debt Offerings