RBC Capital analysts provided their takeaways from General Electric (NYSE:GE) 2023 Analyst Meeting, where the company’s 2023 guidance was reaffirmed, but the bigger surprise was that management raised its long-term organic growth and free cash flow conversion targets for both GE Aerospace and GE Vernova.

The Aerospace organic growth long-term target was boosted from mid-single-digits to mid-single-to-high-single-digits percentage growth, and free cash flow conversion was raised from 90% to approximately 100%.

At GE Vernova, the long-term organic growth target was raised from low-single-digits to mid-single-digits, and free cash flow conversion was improved from 80%-90% to 90%-110%. Other notable positives in the outlook include Renewables growth of double digits in 2024 (vs. Street estimate of 6.5%).

The analyst raised their price target to $100 from $93 while maintaining their Outperform rating.