Goldman Sachs Defending General Electric (GE): 'we would buy the dip'
Goldman Sachs analyst Joe Ritchie reiterated a Buy rating and $155.00 price target on General Electric (NYSE: GE).
The analyst comments "Bottom line: Strong beat, 2024 outlook inline. GE ended the year on a strong note, posting a 9% segment EBIT beat vs. FS consensus expectations driven largely by Power. Orders remained robust (+7%) with Aerospace (+10%) leading the way (Aero Services: +22%). GE introduced their FY24 outlook which now reflects GE Vernova and GE Aerospace operating independently. Excluding the incremental standalone costs of operating as two separate entities, the high end of segment EBIT appears inline with FS consensus expectations for Aerospace ($7.1bn) and Vernova ($1.6bn). We believe there might be some focus on the call on the 1Q guide of $0.60-$0.65, which is below FS consensus of $0.70. Note that GE beat the mid-point of the original 2023 EPS guide by > 50% so we expect management to continue to guide conservatively this year as well. We believe this is a strong result and if there is any weakness in the shares related to the 1Q guide, we would buy the dip."
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Shares of General Electric closed at $131.23 yesterday.