The recent slide for General Electric does not reflect the fundamental upside for the stock, and investors should take another look at it, according to Credit Suisse. GE announced a three-way split on Nov. 9 that will divide the company into separate aviation, health-care and energy operations. Shares initially jumped but then retreated . Credit Suisse analyst John Walsh upgraded the stock to outperform from neutral, saying in a note to clients Tuesday it looked more attractive after that dip. "The 14% pullback since the separation announcement on Nov. 9 has created an opportunity for both absolute and relative price appreciation as GE should benefit from a cyclical recovery in 2022," Walsh wrote. The split itself is still many months away, but a rebound in the aviation business can help the stock gain traction as well, Credit Suisse said. "In December, GE noted that Aviation revenue and [free cash flow] could return to pre-pandemic levels in 2023. We think cyclical recovery and FCF execution will drive the stock higher, despite a 'lack of catalyst' narrative into the spinoffs," the note said. Credit Suisse maintained its GE price target at $122 per share, which is more than 26% above where the stock closed Monday. Additionally, Credit Suisse also downgraded Honeywell to neutral Tuesday, saying it thought GE has more upside potential. -CNBC's Michael Bloom contributed to this report.
General Electric logo is seen through magnifier in front of displayed Aviation, Energy, Healthcare words in this illustration taken, November 9, 2021.