General Electric’s Q3 Cash Flow Outlook ‘Timing-Related,’ Says Citi

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Citi analysts said on Monday that General Electric($NYSE:GE)’s guidance that its third-quarter cash flow will be in line with or slightly better than its second-quarter cash flow is mostly “timing-related.” They added that a delay in free cash flow doesn’t significantly change the bank’s outlook for GE. These remarks come after statements last week from GE CFO Carolina Dybeck Happe. GE’s guidance is based on the timing of payments and receipts, Citi said, and the bank doesn’t see this as a change to the company’s overall cash flow outlook. GE’s free cash flow has been delayed in recent quarters, but Citi still expects it to be positive for the full year. The bank maintains its buy rating on GE shares.

Price History

On Monday, General Electric’s stock opened at $65.6 and closed at $67.0, up by 1.0% from prior closing price of 66.4.

VI Analysis

Companies with strong fundamentals tend to have a long-term potential. This can be seen in the case of General Electric . GE has a strong cash flow and a manageable debt, which gives it a health score of 5/10. This means that GE is likely to be able to sustain future operations in times of crisis. GE is also classified as a “cow”, which is a type of company that has a track record of paying out consistent and sustainable dividends. Dividend-paying companies are deemed to be less risky, as they pursue growth at a sustainable rate. In terms of key financial indicators, GE is strong in dividend, medium in profitability and weak in asset growth.

Summary

General Electric’s stock is tanking because of concerns about the company’s cash flow. Citi analysts say that the company’s cash flow problems are ‘timing-related’ and that General Electric’s stock is a bargain at its current price. General Electric has been facing headwinds in recent years, but the company’s strong cash flow has helped it weather these challenges. General Electric’s stock may be a bargain at its current price, but investors should still be cautious about the company’s cash flow problems.