Why General Electric Stock Just Popped
Shares of General Electric (NYSE: GE) raced ahead in early afternoon trading on the New York Stock Exchange (NYSE) Monday. GE stock rose 5.5% through 1:10 p.m. EST after Goldman Sachs announced it is raising its price target on the industrial giant's stock to $15 per share after a GE rival suffered some embarrassing news.
Let's tackle the price-target hike first. This morning, Goldman Sachs reiterated its "buy" rating on GE stock citing a belief that "GE will beat consensus FCF [free cash flow] expectations for 1Q," generating perhaps $200 million in the current quarter. Furthermore, after meeting virtually with GE management to discuss how things are going, Goldman is convinced the company could "land within the top end of the FCF range for 2021," predicting that by year-end, GE will have thrown off $4 billion in total cash profits.
As reported by StreetInsider.com today, Goldman is citing "2020 cash restructuring actions and working capital improvements" as a couple of factors contributing to GE's likely cash success.
Source Fool.com
