NEW YORK (TheStreet) -- General Electric (GE) has "at least half a dozen potential catalysts that could lead to significant value creation" for shareholders, according to a Barclays report published Monday in which analysts write that they "remain highly constructive on GE stock over the next several years."
The report lists GE among 18 industrial stocks on Barclays' "best ideas" list, along with Honeywell International (HON), Tyco International (TYC), Caterpillar Inc. (CAT), Deere & Co. (DE) and FedEx Corp. (FDX) and Boeing Co. (BA).
Barclays' "multi-industry" sector analyst Scott Davis highlights a recent announcement by GE Capital that it will distribute a dividend to the parent company, noting it was "bigger and earlier than we expected."
Davis cites "execution around the coming gas power generation cycle" as "the main catalyst in the near-term" but he also points to a dividend yield that is "high and rising," improving earnings quality, share repurchases and "de-risking" at GE Capital among other "tailwinds."Davis believes investors will eventually assign GE a higher multiple, one of the reasons he contends that "a $30 stock is very possible in the next 2-3 years." GE shares have struggled recently, losing nearly 6.1% from Tuesday's close through much of Monday's trading. About an hour before Monday's close, shares were down 1.91% to $18.18. -- Written by Dan Freed in New York. Follow this writer on Twitter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV