Will General Electric Stock Go to $200? 1 Wall Street analyst thinks so

General Electric (NYSE: GE) has had a great year, with the share price up 96% in the last 52 weeks. It looks like this streak will continue with the GE Vernova spinoff, scheduled for April 2. That’s the opinion of Wells Fargo analyst Matthew Akers, who recently raised GE’s price target from $177 to $200. Akers maintained an ‘overweight’ rating on the stock.

General Electric has a path to higher margins

According to Akers, the spin-off gives GE the potential to significantly reduce costs in the coming years, which should lead to higher margins over time. As a smaller company, there is an obvious opportunity to reduce operating costs, and the GE Aerospace segment will move into a cash flow-generating space as revenue from LEAP engine maintenance starts to flow in.

Moreover, Akers believes GE Vernova is worth about $34 per GE share, a relatively high estimate compared to other Wall Street analysts.

How GE Vernova is acting now

The excellent news is that Akers’ GE Vernova estimate is close to target. The entire GE Vernova has not yet begun trading in the “regular manner”, but began trading on a “when issued” basis on March 27 under the ticker “GEV WI”.

At the time of writing, the price is trading at $133, and since GE shareholders will receive one GE Vernova share for every four shares they hold in GE, the price works out to $33.25 per GE share, close to Akers’ objective.

On the other hand, GE stock trading without the right to receive GE Vernova shares (under the ticker “GE WI”) is trading at around $145 at the time of writing. As such, GE Aerospace (what the remaining company will be called) is not quite at the level Akers envisions. But if he’s right about the margin

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