Do General Electric's Growth Plans Add Up?
General Electric (NYSE: GE) CEO Larry Culp gave some investor presentations recently and what he said helped investors think about the investment opportunity over the long term. It's no secret that GE needs to improve its earnings and free cash flow (FCF), and the good news is it appears to be on track. Indeed, Culp has referenced a figure of $7 billion as an initial target. The question is whether that figure makes the stock a good value or not. Moreover, what about GE's growth prospects once the turnaround is nearing completion?
Culp believes GE is on track to generate around $7 billion in FCF by 2023 due to a combination of revenue of $85 billion to $90 billion with a high-single-digit FCF margin. What's more, GE's implied guidance is better than what Wall Street analysts have penciled in, so there's room for optimism.
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Source Fool.com
