(CercleFinance.com) – Bank of America raised its price target on General Electric stock on Monday from $92 to $96 ahead of the group’s next investor meeting, which will take place next Thursday.
The American broker – which maintains its buy recommendation on the stock – points out that the industrial group should particularly benefit from the improvement in international air traffic, through its subsidiary GE Aerospace.
According to BofA, there is a 50% chance that its XA101 reactors will be selected to equip the F-35 fighter jets, a contract which, according to him, could generate an operating profit of one billion dollars a year at GE Aerospace for the duration of the program.
Concerning Vernova, the energy division of the conglomerate, the branch should benefit from the effects of the Inflation Reduction Act (IRA) which should support projects in wind energy, continues the broker.
Finally, the professional believes that GE’s balance sheet structure should benefit from the monetization of its stakes in AerCap and GE Healthcare, which together could generate revenues of some $15 billion.
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