General Electric stock should be worth $141: Deutsche Bank

General Electric Co has already gained about 70% year-to-date but a Deutsche Bank analyst is convinced the stock is not out of juice just yet.

General Electric stock could climb another 25%

Scott Deuschle assumed coverage of the industrial giant this morning with a “buy” rating. His $141 price target suggests another 25% upside from here.

He likes General Electric stock particularly for the company’s aerospace business.

We think Aerospace as a standalone business can trade at a premium to comps, thanks to its status as a market leading propulsion pure-play and high [free cash flow] conversion.

The Boston-headquartered firm is expected to report its Q3 earnings in the final week of October. Consensus is for it to earn 55 cents a share versus 35 cents per share a year ago.

Why else is he bullish on General Electric stock?

Scott Deuschle expects the New York listed firm to consistently improve its market share as it continues to reinvest in technology.

The Deutsche Bank analyst is bullish on General Electric stock also on the company’s ability to “use price as a strategic weapon” against its competitors.

Other reasons he cited for the constructive view on GE include its deep moats, robust install base, a strong management team, and improving profitability coupled to its leading edge aviation propulsion or LEAP engines.

Earlier this month, General Electric said it was opting for an underwritten public offering to unload its stake worth $2.44 billion in the aircraft leasing company AerCap Holdings NV.

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