Goldman Sachs: General Electric stock could climb by 24%

General Electric Company (NYSE: GE) opened about 2% up in the stock market on Tuesday as Goldman Sachs said it was the best industrial stock that will benefit from the reopening. The investment bank also added GE to its list of “top large cap ideas”.  

Goldman Sachs has a price target of $16 on GE

Goldman Sachs reiterated its ‘buy’ rating on General Electric with a price target of $16 per share that translates to an about 24% upside potential. In the back half of 2021, it expects the American multinational to raise its industrial free cash flow to close to $4.5 billion. Goldman Sachs is positive that a sharp recovery in renewable energy and aerospace will add resilience to the stock.

In a client note, the financial services firm said on Tuesday:

Stephanie Link’s remarks on CNBC’s “Halftime Report”

General Electric is scheduled for its announced one-for-eight reverse stock split on 30^th July. Commenting on Goldman’s call on CNBC’s “Halftime Report”, Hightower portfolio manager Stephanie Link said:

Stephanie also explained in the same interview why she’s overweight industrials. On a year-to-date basis, General Electric, which is set to publish its Q2 results on 27^th July, is currently up about 25%.