General Electric is having a banner year, and Deutsche Bank thinks the industrial giant could see even more gains going forward. The bank initiated GE with a buy rating and a $141 per share price target. Deutsche’s forecast implies more than 27% upside from Wednesday’s close. GE has soared nearly 70% in 2023. That puts it on track for its biggest annual since at least 1972, FactSet data shows. GE YTD mountain General Electric stock has climbed more than 69% in 2023. Analyst Scott Deuschle lauded the company as a “beat and raise story with a catalyst rich outlook,” to which he attributed the most optimism to its aerospace segment. “[W]e think the stock is well positioned to outperform— even after the big YTD run,” Deuschle said. “On valuation, we think Aerospace as a standalone business can trade at a premium to comps, thanks to its status as a market leading propulsion pure-play and high [free cash flow] conversion.” The analyst added GE Aerospace will create a “self reinforcing loop” to reinvest in technology and add to its market share. “This raises GE’s competitive moat, and enhances the terminal value of the business. Another benefit of its share position is that it allows GE to generate learning curve benefits more rapidly, lowering new engine costs, and allowing it to use price as a strategic weapon against competitors that are comparatively sub-scale,” he said. — CNBC’s Michael Bloom contributed to this report.
