Analyst Note
| Joshua Aguilar |We were disappointed by narrow-moat-rated General Electric’s first-quarter performance, even accounting for well-documented supply chain and inflationary pressures. GE’s first quarter is traditionally weaker, but even so, renewables and healthcare operating margins were an eye sore, and we’re skeptical that these two businesses will be anywhere near GE’s aspirations earlier this year at outlook, despite the mixed signals provided by management. Therefore, we reduce our fair value estimate by 5% to $126.
