Pitch: Upside from recovery in the aviation industry as well as plans to break itself up into three pieces. Despite spin-off plans, the market continues to value GE much the way it always has: as a low-margin conglomerate with few high-value assets. This view will change significantly over the next two years.
Valuation: GE trades at 9.3x 2023 EBITDA, materially below 13.5x for multi-industrial and 12.2x for aviation peers.
Exp. gain: 28% to $118/share in base case sum of the parts scenario
Full GE write-up (free guest account required):