Gabell's Bergner joins analysts warming to GE

|By:, SA News Editor

General Electric (GE +0.5%) is reiterated with a Buy rating at Gabelli, where analyst Justin Bergner says he likes the company's restructuring plan.

Bergner believes GE shares can trade as high as $20 by year-end FY 2019 based on his sum-of-the-parts value, in which he assigns $8 in value from businesses to be traded separately.

While some investors think there's more bad news to come from GE Capital, Bergner thinks the $3B equity contribution to the segment anticipated next year should put it back on track for $8B-$9B "prior to any losses from asset sales."

Finally, Bergner says it is a "game changing catalyst to de-lever the balance sheet, surface asset value, and simplify GE, while giving HC its own autonomy in a fast-changing healthcare environment."

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