Bernstein offers five reasons to favor GE as it upgrades shares

General Electric (GE +1.8%) is upgraded to Outperform from Market Perform with a $33 price target, up from $29, at Bernstein,which offers five reasons for favoring the stock.

The firm sees growing evidence of portfolio and cultural transformation at GE resulting in accelerating cost reduction and the most Industrial focused mix in almost 25 years, as well as coming catalysts in the GE calendar through 2015 as backlog converts into the back half.

Trading at 15.1x the next 12 months of earnings for its industrial business, GE is cheaper than most other industrials, including Danaher (NYSE:DHR) at 21.7x, 3M (NYSE:MMM) at 17.8x, and Emerson Electric (NYSE:EMR) at 16x, the firm says.

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Comments (3)
  • starcorral
    , contributor
    Comments (1756) | Send Message
    Bernstien doesn't get to ride shoulder to shoulder with JI and the BOD till GE's 3rd and 4th quarter results are posted. I'll let the professonals ascertain if the path ahead looks good, because I don't have time to run the numbers like they do. Meanwhile GE was alredy ahead of the game plan of % of industry vs. %banking when they divested what beame Synchrony.


    Africa has been a new frontier for 100 years. For those of you have not read my post about the growing political impact of huge corporations in comparison with that of (so-called) "sovereign" nations: Read It! Maybe it does say I am a throwback to Any Rand and Orwellian fantasy; I don't think so.


    While I have hopes for GE to perform as Berstien projects, my real optimism is about GE taking root where little has grown before. I do believe that GE can negotiate its way into actually blunting militaristic mindset with the choice of a people generating domestic production.


    OK - so I am a dreamer. Consider JI and the BOD; they are no less; in fact much much more. This is why GE is turning up the heat now; this is why I hope JI is doing like Alan Mulally at Ford grooming someone who can continue what both sides of my brain can appreciate.
    6 Aug 2014, 01:25 PM Reply Like
  • JoeBirle
    , contributor
    Comments (30) | Send Message
    Question the source.
    6 Aug 2014, 02:19 PM Reply Like
  • mydogmoe
    , contributor
    Comments (1438) | Send Message
    Wouldn't be too hard for any stock to outperform this market...
    6 Aug 2014, 03:17 PM Reply Like
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