However, the stock today climbed nearly 10% on the back of the news that GE CEO Larry Culp bought $ 2 million in shares after yesterday's fall.
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "William Blair Analyst Nicholas Heymann remains unaffected by bearish report, which supports Culp's huge vote of confidence repeating an outperform rating on GE stock, and although Heymann does not have a stock price target, his calculations mean intrinsic value between $ 14 and $ 16 per He believes the area "could be a likely valuation of GE's shares over the next 12-18 months. "(To see Heymann's track record, click here )" data-reactid = "13"> William Blair analyst Nicholas Heymann remains inappropriate by the bearish report, which supports Culp's huge vote of confidence as he repeats a Although Heymann does not have a price target on the stock, his calculations imply an intrinsic value between $ 14 and $ 16 per share, and he believes the range "could be a likely valuation for GE's shares over the next 12- 18 months. "(To see Heymann's track record, click here )
The report, led by Harry Markopolos, states that GE has overestimated its financial strength. The most important aspect of the report is that it predicts that GE will need to "contribute $ 18.5 billion in cash and take a $ 10.5 billion non-cash fee to comply with accounting changes that take effect in the first quarter of 2021 for GE's Long Term Healthcare Reinsurance (LHTR) legacy business. “This goes beyond the $ 15 billion cash reserve GE already announced in early 2018. If these changes were made in GE's annual accounts, GE would be in a financially weak position.
Heymann finds it hard to believe that GE, which has been involved in several regulatory reviews of its accounting and financial disclosures for over two years, has fraudulently misreported its financial reporting.
GE's CEO canceled the company's full-year guidance in July, so the stock's disappointing month comes as a surprise to management. In addition to buying shares after the 11% fall yesterday, the CEO called the accusations false and accused the accounting firm of trying to manipulate the share price.
The transformation under newly installed CEO Larry Culp will be a long and complex process. Heymann believes that the worst has gone, and GE's financial health is gradually starting to improve.
<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "All in all, Wall Street is fairly evenly split between bulls , bears and fence sitters Based on 14 analysts polled by TipRanks over the last 3 months, 3 rate GE a "buy", 3 issue a "hold", while 3 propose to "sell" on the stock. at $ 9.58, marking a near 9% upside from where the stock is currently trading. ( See GE's price target and analyst ratings on TipRank's ) "data-reactid =" 26 "> All in all, Wall Street fairly evenly distributed between bulls, bears and fence sitters. Based on 14 analysts polled by TipRanks over the past three months, GE ranks a & # 39; buy & # 39; 3 provides a & # 39; hold & # 39 ;, while 3 suggest selling & # 39; # 39; on the stock. The 12-month average price target is $ 9.58, marking a near 9% upside from where the stock is currently trading. (See GE's price target and analyst ratings on TipRanks)