GE Stock Forecast: General Electric Company (GE) flat as Morgan Stanley raises price target

GE Stock News update: GE shares continued to stabilise after the mixed earnings report on Wednesday. GE beat analyst expectations for sales saying power orders were up 26% but missed on EPS. GE shares are currently slightly down in Thursday's pre-market trading.

NYSE:GE has long been a forgotten company in the current market landscape, but another successful earnings report saw the stock surge on Tuesday. On Wednesday, despite a hot start to the day, General Electric finished up 0.80% and closed the trading session at $11.38. The move pushed GE above its 50-day moving average and is now firmly positioned to move towards its 52-week high price of $13.26. Had it not been for the shenanigans and short squeezes that wreaked havoc on the markets, General Electric could have potentially seen another nice day of gains.

While the earnings came in slightly lower than expected, General Electric did manage to beat Wall Street revenue estimates for the previous quarter. Perhaps the most important takeaway from its earnings call on Tuesday was that the foundational American company finds itself back in free cash flow positive territory for the first time in years. General Electric even gave 2021 free cash flow guidance, estimating that the company will be able to generate between $2.5 billion and $4.5 billion. This is particularly impressive given the current uncertainty around the aviation sector, and if commercial travel can open up at some point this year, GE may be on course for more stellar earnings reports. 

GE stock price

General Electric’s balance sheet has played a role in putting it back on the radar of Wall Street analysts. Wednesday morning, Morgan Stanley raised its price target on General Electric to $13 and reiterated that many of GE’s estimates and guidance figures were very conservative. An analyst from CitiGroup also echoed these sentiments as some of Wall Street’s biggest investment firms are slowly buying back in.