General Electric Stock Growth
There has been a sudden uprise noted with the General Electric stock(NYSE: GE) as of Tuesday since March.
The stock seemed to grow with its upgrade courtesy of Oppenheimer. It surpassed it is former $10 to achieve a $12 price target.
What this means
General Electric’s financial position improved due to the sale of its biopharma division to Danaher. The sale went for a net of $20million. Cash balances are positively rising(about $24.3 million), and net levels of debt have significantly decreased, a whopping $34.6 billion, pension obligations inclusive.
Regardless of this positive spin on things, GE’s free cash flow doesn’t look too good. Going forward a year or two, Oppenheimer sees a potential upside to the free cash flow.
S&P Global Market Intelligence has collected forecasts that concurs with Oppenheimer. Even though GE stands to burn cash, data analysts believe that the free cash flow could become positive(around $2.4billion) and experience 67% worth of growth in the coming years.