Please ensure Javascript is enabled for purposes of website accessibility

Why General Electric Stock Climbed Today

By Joe Tenebruso - Updated Mar 15, 2021 at 1:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Analysts are growing more optimistic about the industrial titan as its turnaround strategy progresses.

What happened 

Shares of General Electric (GE -0.65%) rose on Monday, following bullish analyst remarks. As of 11:35 a.m. EST today, GE's stock was up 3% after rising as much as 5% earlier in the day.

So what 

Bank of America analyst Andrew Obin recommended that investors buy GE this morning. He sees the industrial giant's share price climbing to $15, or about 15% higher than their current price. 

A digital bull is climbing a rising stock chart.

Analysts see more gains ahead for General Electric's shareholders. Image source: Getty Images.

Obin acknowledges that investors were likely miffed by GE's planned 1-for-8 reverse stock split. But he believes GE's simpler operating structure and stronger balance sheet following the sale of its aircraft-leasing business should make it more attractive to a wider base of investors. Better still, Obin now expects GE to generate as much as $6.5 billion in free cash flow by 2023. 

Now what

Obin isn't the only analyst to buy into GE's turnaround plans. UBS analyst Markus Mittermaier also reiterated his buy rating and $15 price forecast on Monday. Mittermaier highlighted the company's potential to generate increasing free cash, which it could use to pay down debt and further strengthen its balance sheet. In turn, he sees the stock's recent pullback following its announced reverse stock split as a buying opportunity for long-term investors. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

General Electric Company Stock Quote
General Electric Company
GE
$75.25 (-0.65%) $0.49

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.