Shares of General Electric could rally 28 percent to $40 in the next 12 months as the Dow Jones industrial average component restructures its portfolio of businesses, grows earnings and benefits from lower corporate taxes, according to Bernstein analysts.
The firm upgraded the stock to outperform from market perform on Friday.
"Yes GE is often unloved, but the changes are big and they have come fast and furious in the last 3 years," analyst Steven Winoker wrote in research note. "Our discussions with GE leadership across the segments give us increased confidence in their ability to execute from here, including on earnings and cash."
This year, shares of GE have underperformed the market, showing a slight gain against a 14 percent increase for the Dow.