- "Even the most hardened skeptic might want to re-consider following the CEO change," Barclays said.
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BARCLAYS: GE is starting to look like a phoenix that may 'emerge from the flames' (GE)
General Electric shares jumped on Monday after Barclays said the stock could have more upside amid its restructuring plans under new CEO Larry Culp.
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"We think the upside potential in the shares is considerable now that an outside CEO has been put in place, which substantially increases the range of possibilities that could be pursued at GE, in terms of both the pace of the restructuring as well as broader strategic options," he said in a note to clients on Monday.
Mitchell expects the company to revamp its struggling power business with major cost reductions, improve its cash flow, and potentially issue equity if there appears "a genuine risk that a substantial part of the $40bn in net credit lines have to be tapped."
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"While we do not yet know the magnitude of the 2018 guidance cuts, talking to investors we believe they are broadly braced for EPS of ~$0.75 for 2018, FCF of ~$0.50, and a dividend cut of 75%+," Mitchell said.
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BusinessInsider
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