Shares of General Electric Co. (NYS:GE) rose for a fourth-straight session on Wednesday, after UBS analyst Markus Mittermaier raised his price target for a second time in a month, saying he expects valuations to re-rate to February levels. GE's stock rose 0.6% in afternoon trading, putting it on track to close at the highest price since March 4. It has gained 8.7% over the past four days, and 41.6% month to date. In comparison, the S&P 500 (S&P:SPX) has gained 10.9% this month. Mittermaier lifted his price target to $12 from $9 while reiterating his buy rating. The last time the stock closed above $12 was Feb. 21. On Oct. 23, five days before GE reported third-quarter results, Mittermaier had raised his price target to $9.00 from $8.50, saying he believed that of the stocks he covered, GE's was the most levered to a COVID-19 vaccine. On Wednesday, Mittermaier said positive news this month on potential vaccines has already prompted a "rapid re-rating" of GE's stock, but he expected "further upside with the debate ultimately returning to where we left it off in February," he wrote in a research report to clients, given an upbeat outlook on free cash flow, aggressive debt pay downs and a vaccine-levered recovery in aviation, among other things.
Nov. 25, 2020, 2:59 p.m. EST