5 Reasons General Electric Can Outperform
On a headline basis, General Electric's (NYSE: GE) recent investor presentation was excellent. Management reaffirmed its 2022 guidance and its targets for 2023, which means it's on track with its breakup plans. GE's management expects $5.5 billion to $6.5 billion in free cash flow (FCF) in 2022 and more than $7 billion in 2023. The current market cap is $102 billion, so those figures make GE look very attractive. That said, what level of confidence can investors have in these expectations? I think the answer is "quite a lot," and here are five reasons why.
To help flesh out these arguments, here's a quick look at the details behind the guidance and the relative importance of each segment. The first point to note is that the low end of the 2023 profit guidance for healthcare and power is below the midpoint of guidance for 2022. This is despite management predicting revenue growth and margin expansion for both segments in 2022 and 2023. As such, the headline 2023 guidance looks conservative.
2023 (Est)
Source Fool.com
