GE Shares Moving Higher Despite Analyst Downgrade

Color on earlier downgrade of General Electric (NYSE: GE):

Hilliard Lyons downgrades General Electric (NYSE: GE) from Buy to Long-Term Buy. The firm maintained its $20 price target.

The firm notes that with shares of GE over $15, the stock has reached Hilliard Lyons' estimated value of GE's industrial assets alone. While GE's financial unit has now stabilized, the firm is concerned that the expected recovery could be very slow: "We assume the financial unit has some value, though it may take a longer period for the stock to reflect it."

Turning to GE's other divisions, Hilliard Lyons said infrastructure is positioned for solid long-term growth and both the energy and aviation/rail units will reflect higher long-term demand.

Despite the downgrade, traders are gobbling up shares of GE today. The stock most recently traded at $15.74, up 2.5% from yesterday's close. The Hilliard Lyons price target represents potential upside of about 27% from current levels.

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