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General Electric Shares Gain After UBS Boosts Price Target to $17

UBS analyst Markus Mittermaier lifted his price target on GE to $17 a share, citing the success of CEO Larry Culp's turnaround effort.

General Electric  (GE) - Get General Electric Company Report shares jumped higher Friday after analysts at UBS boosted their price target on the group amid the ongoing turnaround for the industrial giant under CEO Larry Culp.

UBS analyst Markus Mittermaier moved his price target $2 higher, to $17 a share -- among the highest on Wall Street -- while maintaining his 'buy' rating on the stock, citing Culp's success in steering the group's turnaround and its simplified business structure and improving industrial cash flows. 

General Electric shares were marked 0.25% higher in early trading Friday to change hands at $13.50 each, a move that would peg the stock's six month gain at around 98%. 

Gains were capped by news that Boeing  (BA) - Get The Boeing Company Report had alerted customers to a potential electrical issue with the 737 MAX, whose engines are made by GE in partnership with France's Safran  (SAFRY) .

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GE said last month that industrial revenues will grow "organically in the low-single-digit range" while earnings should come in between 15 cents and 25 cents per share. Industrial free-cash flow, GE said, is forecast in the range of $2.5 billion to $4.5 billion. 

Culp told investors last month that the company's transformation into a "more focused, simpler, and stronger industrial company" will mean industrial revenues will grow "organically in the low-single-digit range" over the current fiscal year, with free-cash flows forecast in the range of $2.5 billion to $4.5 billion.

GE will publish its first quarter earnings on April 27, with an early Street forecast suggesting analysts are looking for an adjusted bottom line of 1 penny per share on revenues of $17.58 billion.

Last month, GE sold its aircraft leasing business to AerCap Holdings of Ireland for around $30 billion, including $24 billion in cash, 111.5 million in AerCap shares and a further $1 billion that could be paid in either cash or notes.

The transaction leaves GE with a 46% ownership stake in the combined group, which will have around 2,600 commercial aircraft in service, store or on order from major carriers around the world.