Shares of General Electric Co. (GE) powered up 5.5% toward a sixth-straight gain in afternoon trade Monday, enough to pace its industrial-sector peers, after Bloomberg reported ( ) that Apollo Global Management LLC (APO) was readying a bid to buy GE's jet-leasing business, which could be valued at as much as $40 billion. CFRA analyst Jim Corridore followed by upgrading GE to buy from hold, and lifted his price target to $11, which is about 27% above current levels. "With GE preparing to spin-off healthcare and sell-off its share in Baker-Hughes, we think this news could provide a path to fix GE's highly leveraged balance sheet," Corridore wrote in a note to clients. Meanwhile, J.P. Morgan analyst Stephen Tusa, the long-time bear who caused a stir last month when he upgraded GE to neutral from underweight, said he struggles to see support for a $40 billion valuation, and believes the business is worth closer to $30 billion, and doesn't believe a sale would be the "silver bullet" to leverage issues that bulls expect. He reiterated his $6 stock price target, which is 31% below current levels. The stock has gained 29.5% over the past since it closed at a 9 1/2-year low of $6.71 on Dec. 12, while the SPDR Industrial Select Sector ETF (XLI) has declined 3.7% and the Dow Jones Industrial Average has lost 4.0% over the same time.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 07, 2019 14:45 ET (19:45 GMT)
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