Jim Cramer: Goldman Note on GE Is Good for 2023
General Electric got a boost after Goldman Sachs resumed coverage of the company with a buy rating and a $10 price target.
Goldman Sachs analyst Joe Ritchie, citing the progress towards a '"leaner, structurally more productive company with better capital discipline" during the two-year tenure of CEO Larry Culp, said the group's free cash flows will improve next year as its higher-margin businesses recover from the worst of the coronavirus pandemic. He also argues there is a potential upside for both the stock and its longer-term price target heading into the group's third-quarter earnings on October 28.
Culp told investors last month that GE's industrial free cash flows would be positive before the end of this year, a noted improvement from his July update that it would likely turn positive on in 2021.
In late July, when GE published a wider-than-expected second-quarter loss of $2.2 billion, Culp noted "faster progress on elements within our control, including our targeted cost and cash preservation actions.'
Jim Cramer discussed whether or not this would make GE a buy for the average Robinhood investor.
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