The stock market panic sell-off has left many attractive buying opportunities for long-term investors who can filter through the noise that caused the sell-off in the first place. If Credit Suisse is correct, General Electric Co. (NYSE: GE) is one of those top opportunities.
Credit Suisse already had an Outperform rating on GE shares, but now the firm has added the stock to its US Focus List and its Global Focus List. The firm’s $31.00 price target compares to a $25.30 prior closing price. With GE having been added to the focus lists, Credit Suisse clients around the world are now being aggressively told to buy GE shares if they do not already own it — or to buy more if they do.
Wednesday’s note showed the catalysts that are expected to drive a rebound in GE’s share price performance. One of those is a very favorable risk/reward profile of the stocks in the industrial and conglomerates sector after having sold off so much. Credit Suisse also expects a fairly subdued earnings reporting season.
While Credit Suisse did not spend much time on the Synchrony Financial (NYSE: SYF) spin-off, this ties in here as well. Synchrony’s spin-off should be coming in the next quarter or so. What stands out to 24/7 Wall St. about this GE call is that much of it is why GE is actively one of our own 10 stocks to own for the next decade. In call elsewhere, Merrill Lynch listed GE as a transforming-world stock. GE was also shown to be looking better than rivals after the last earnings reports.
GE itself was shown with several company-specific catalysts. Credit Suisse even thinks these will help drive the shares higher, toward the $28.00 to $29.00 range, in a shorter period than that $31.00 longer-term price target.
GE’s high services and aftermarket mix of earnings were said to imply relatively limited downside risks in the event of a weak global macro environment in 2016. Another defensive agent for GE shareholders is an already-high dividend yield of over 3.5%.