General Electric Company (NYSE:GE) has fallen on hard times.

PenneyVanderbilt

Stock News

The industrial behemoth, collapsing under the weight of shortsighted acquisitions and massive pension obligations, has seen its shares plunge more than 24% in 2018 alone, and 56% over the past 12 months.

However, as CNBC reports, at least once prominent Wall Street analyst at Melius Research believes GE is being undervalued at this point:

Past looks at the value of GE’s individual businesses — also known as a “sum-of-the-parts” analysis — cast doubt on whether a fire sale of GE’s assets would even fetch today’s price at $13.28 per share. But Melius found that spinoffs from U.S. industrial companies return twice the value of the broader stock market, revealing a more optimistic forecast for GE.

“GE’s [sum-of-the-parts] as an example … likely undervalues the assets by 25 percent or more,” Melius wrote.

GE has been spinning off units at a rapid rate to raise cash. It also slashed…

View original post 90 more words

Advertisements