General Electric's ‘Kitchen-Sink is Coming,’ UBS Analyst Says
(Bloomberg) -- General Electric Co.’s writing down all of Power’s goodwill and recognizing both cash and earnings shortfalls set the stage for “re-baselining the company, dividend policy and capital deployment again,” UBS analyst Steven Winoker wrote in a note to clients, adding that an update is coming in the earnings call.
GE shares jumped as much as 16 percent Monday after the company named highly respected industry veteran Larry Culp as Chief Executive Officer, replacing John Flannery a little more than a year into his job. Winoker, who has a neutral rating on GE and a price target of $13, said Culp was likely to inspire confidence in the company’s turn-around potential.
“A new CEO might not change the facts of the current headwinds, but as we have noted many times, it is hard to refute Larry Culp’s track record and accomplishments at Danaher during his tenure,” Winoker added.
GE is scheduled to report third-quarter results on October 25.
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