General Electric Company (NYSE:GE) has in the recent past been doing away with its financial business as it looks to position itself, more of a giant industrial company than it has been over the past 25 years. The company has over the years wanted to be valued as an industrial conglomerate than a company weighed down by a big consumer finance unit. General electric’s 5% organic growth in the industrial segment according to CNBC’s, Jim Crammer, is better than what other players in the same space have registered
General Electric Company (NYSE:GE)’s 5% organic growth in the industrial segment, according to CNBC’s, Jim Cramer, is better than what other players in the same space have registered. The main challenge, according to Cramer is the fact that its growth has not trickled down to its bottom line. Cramer remains optimistic on General Electric reaching the $40 mark if it can get everything right in the industrial segment, towards which it has shifted its focus.
“[…] They did have a 5% organic growth, which is better than almost every single industrial I follow, it’s just that it was not falling to the bottom line. If they can get it to fall to the bottom line the stock goes to $30; this is $24 on the downside, $30 on the upside, if they get it right,” said Mr. Cramer.
Bernstein’s target for General Electric Company (NYSE:GE) at the moment stands at $33, the analyst changing its rating to ‘Buy’ as Cramer pointed out. The analyst maintained that Alstom risks are manageable and with industrial exposure taking a good shape, all is in the company going forward. Europe, on the other hand, according to Cramer could pose the greatest challenge for General Electric taking into consideration the fact that many companies are fleeing the industrial segment.
Cramer expects General Electric Company (NYSE:GE) to surge to a high of between $29 and $33 if a sustainable solution is found in Europe especially on the standoff between Russia and Ukraine.
“Europe is bad again, people are fleeing from the industrials. General Electric Company (NYSE:GE) has been a little bit stale every time they do something, seems like something else goes away. But I do think if you feel that Europe is going to turn, if you feel that Russia is going to ask for this demilitarized zone, [...] then you are going to get to $29-$30,” said Cramer.