UPDATE: General Electric (GE) PT Raised to $15 at Barclays

Barclays analyst Julian Mitchell raised the price target on General Electric (NYSE: GE) to $15.00 (from $13.00) while maintaining a Overweight rating.

The analyst comments "We acknowledge though that 2022 now becomes the first year of meaningful GE firm-wide de-levering, rather than 2021, and longer-term investors may wait until we see clearer evidence of the Aviation recovery later in 2021, to affirm that the 2022 de-levering scenario is intact. We thought it was encouraging that Capital is guided to be break-even in 2022+, following the debt reduction (lower interest) alongside the GECAS sale, although this is still below the $5bn+ of 2022-2024 in KID payments.Useful answers on most Key topics: We heard clarity on most of the 10 key topics we hoped that the investor event would shed more light on. In particular, (i) It sounds as if Aviation could reach $4bn+ of FCF in 2023 (given shop visits / EBIT comments); (ii) The Healthcare FCF conversion guide was raised (90% to 100%); (iii) More conviction in the Power Portfolio turn-around (~$1.5bn of FCF headwinds in 2021 within the zero Power FCF guide from AR factoring, restructuring, project close-out, legal settlements); (iv) the Renewables turnaround sounds uneven (Hydro break-even not until 2023) amidst good progress in the offshore push ($3bn of sales in '24 vs $0.2bn in '20); (v) We still think GE can hit an 8% FCF margin in 2022 (the 'HSD' in 2023 relates to 7-9%, while the top-end of the 2021 guide is 6%)."

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