General Electric at $30 'Very Possible' in 2-3 Years -- Barclays
NEW YORK (TheStreet) -- General Electric(GE) has "at least half a dozen potential catalysts that could lead to significant value creation" for shareholders, according to a Barclays report published Monday in which analysts write that they "remain highly constructive on GE stock over the next several years."
The report lists GE among 18 industrial stocks on Barclays' "best ideas" list, along with Honeywell International(HON) , Tyco International(TYC) , Caterpillar Inc.(CAT) , Deere & Co.(DE) and FedEx Corp.(FDX) and Boeing Co.(BA) .
Barclays' "multi-industry" sector analyst Scott Davis highlights a recent announcement by GE Capital that it will distribute a dividend to the parent company, noting it was "bigger and earlier than we expected."
Davis cites "execution around the coming gas power generation cycle" as "the main catalyst in the near-term" but he also points to a dividend yield that is "high and rising," improving earnings quality, share repurchases and "de-risking" at GE Capital among other "tailwinds."
Davis believes investors will eventually assign GE a higher multiple, one of the reasons he contends that "a $30 stock is very possible in the next 2-3 years."
GE shares have struggled recently, losing nearly 6.1% from Tuesday's close through much of Monday's trading. About an hour before Monday's close, shares were down 1.91% to $18.18.
-- Written by Dan Freed in New York.
Follow this writer on Twitter.