GE: CEO change not a huge surprise, Credit Suisse says.
(CercleFinance.com) - The appointment of John Flannery as GE's new CEO, replacing Jeff Immelt, is not a huge surprise, albeit occurring a little sooner than most investors had expected, Credit Suisse says.
The brokerage firm — which has an "outperform" rating on the shares with a 34 dollar price target — has been highlighting for a long time that the stock was oversold, and that increasing activist shareholder pressure coupled with the disappointing stock price performance may soon lead to major change at the company.
Credit Suisse — which adds that a long list of items needs to be addressed by the new CEO (such as capital discipline, operating margins, and digital) — also notes that John Flannery will provide a thorough update in autumn as regards his views on both the size and shape of the portfolio.
The one remaining negative catalyst for the stock will likely point to the possibility for a reduction in EPS target for 2018, the broker says.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The brokerage firm — which has an "outperform" rating on the shares with a 34 dollar price target — has been highlighting for a long time that the stock was oversold, and that increasing activist shareholder pressure coupled with the disappointing stock price performance may soon lead to major change at the company.
Credit Suisse — which adds that a long list of items needs to be addressed by the new CEO (such as capital discipline, operating margins, and digital) — also notes that John Flannery will provide a thorough update in autumn as regards his views on both the size and shape of the portfolio.
The one remaining negative catalyst for the stock will likely point to the possibility for a reduction in EPS target for 2018, the broker says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.