General Electric has not had a great year so far, but it might be time for a turnaround. Shares of GE have fallen 12.7% so far this year due in part to a low opinion of the company by many analysts.
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CREDIT SUISSE: GE isn't broken, it's misunderstood (GE)
Credit Suisse researchers think that the stock has ben weighed down by overly bearish analysts.
But research analysts at Credit Suisse have a rosier view of GE's prospects. According to a research note released Thursday, the bears' opinions are "overstated" and have swung the stock into an attractive buying position.
"We think that GE is not a ‘broken company’," the analysts wrote, "although it might be somewhat misunderstood." Credit Suisse rates the company as "outperform."
Overly pessimistic analysts aren't the only reason GE is attractive right now, the analysts said. Equipment orders have been weak over the last 18 months, but because of a historically longer order cycle, a recent upswing in orders at competing companies means GE could see more orders in the next 9 months, according to Credit Suisse.
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In 2015, GE acquired a power and grid business from Alstrom, it's largest-ever industrial acquisition. Profits from that acquisition are starting to grow, in addition to major new product launches which raise the potential for higher profit margins, Credit Suisse said.
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