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GE's Baker Hughes move means the company has a plan, analyst says

|About: General Electric Company (GE)|By:, SA News Editor

General Electric's (GE +1%) move to cut its stake in Baker Hughes is another important step in the company's deleveraging, Credit Suisse analyst John Walsh says, but he is not yet ready for a bullish call on the stock.

Walsh reiterates a Neutral rating and $11 price target on GE, saying the company's move to put cash to work via its Baker Hughes sale - plus earlier sales of its GE Transportation, biopharma and PK Air Finance businesses - is good news.

While Walsh does not yet consider GE a Buy, he says the company's Q3 report could be a catalyst if investors see evidence of improvement in free cash flow.

In a best case scenario, which includes ongoing improvements to GE's balance sheet, Walsh thinks the shares could climb to $13.

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