Goldman Sachs Sees Further Momentum In General Electric (GE)

Even after shares of General Electric (NYSE: GE) broke above the $17 per share level on Friday, analysts at Goldman Sachs see further upside. The firm reiterated their Buy rating and $21 price target on GE.

In a research report this morning, Goldman Sachs said while they expects an "uninspiring" first quarter earnings report, momentum should continue to build and told clients to "buy" the stock.

Goldman notes that after underperforming peers for 10 years, GE is outperforming in 2010 even as investor sentiment remains lower than any stock in their coverage.

The firm sees 10% upside to 2010-2011 EPS consensus due to cost cuts, a turn in the Aero aftermarket and potential share gains. They also expect investors interest in later cycle stocks should rise. In addition, expectations for 13% commercial real estate value decline in 2010 could prove pessimistic.

Also to investors delight, Goldman said GE is positioned to move back onto the offensive with its balance sheet in 2011 and could potentially boost its dividend and initiating a buyback.

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