Infrastructure
BofA/Merrill Lynch Sees Big Upside in 3M, Still Agressive on GE
Published:
Last Updated:
General Electric Co. (NYSE: GE) managed to hit what was almost a four-year high yesterday as shares crept above $22.00 for the first time since the panic selling of the recession took shares from $30 down to $20 and then ultimately under $10. Now we have Bank of America/Merrill Lynch issuing a new Buy rating on GE. The $25 price target is above the $23.08 consensus from Thomson Reuters.
BofA’s new coverage is actually a reinstated coverage. The firm believes that GE’s stock performance has closely tracked its return on equity and it expects that GE will improve from 10% ROE during the 2009 to 2010 trough and above the 12% in 2011. The belief is that the ROE will grow to 15% in 2013 and 16% in 2014. The gains are based on improvements at GE Capital, a greater contribution from higher margin service businesses, and ultimately from better pricing in late-cycle industrial businesses tied to gas. Today’s report even said that more regulatory visibility at GE Capital likely means that the parent company will be able to keep raising its dividend in line with its earnings, as well as supporting share buybacks and mergers and acquisitions.
BofA/ML is also talking up 3M Co. (NYSE: MMM) as it reinstated 3M with a Buy rating and a $113 price target.
In short, BofA is calling for 13.6% upside in GE and is calling for upside of almost 23% in shares of 3M.
JON C. OGG
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.