Analyst Shannon O’Callaghan from UBS discussed key points from General Electric Company (NYSE:GE) second quarter earnings after it was released earlier this week. The analyst also discussed his expectations for the second half of 2016.

GE’s 2Q orders were down 16%, but the analyst believes that “investors should consider GE’s lumpy comps.” Additionally, Callaghan believes that investors should consider how heavy duty gas turbines and AGP’s are expected to increase by 65% and 50% respectively in the second half of the year. These increases will contribute to a 15% increase in Power organic revenue. Furthermore, Oil & Gas revenues are only expected to drop 7% in the 2H, compared to a drop of 18% in the first half. Meanwhile, cost savings are expected to go up to $800 million for the year, giving GE an extra $500 million in the second half.

One of GE’s recent goals has been to become a digital industry company. Lately, this goal has been gaining momentum. GE wanted to “build and winning platform and ecosystem for industrial Internet of things” by adding partnerships. It set a goal for itself to add 50 partners in 2016. It is already at 54 partners with key partners such as Microsoft and Huawei.

Another takeaway from the earnings report is that GE’s major programs have produced great margins. Its H-turbine project hit break-even in the 2Q and it is expected to begin making revenue in the next quarter. Additionally, its Aviation and Wind projects were reported having healthy margins.

Callaghan maintained his Buy rating on GE with a price target of $37, marking a 17% increase from current levels.

According to TipRanks, the analyst has a yearly average return of 14.4% and a 78% success rate. The analyst has a 17.6% average return when recommending GE, and is ranked #69 out of 4,079 analysts.

TipRanks shows that out of the 12 analysts who rated GE in the last 3 months, 50% gave a Buy rating, 33% gave a Hold rating and 17% gave a Sell rating. The average 12-month price target for the stock is $32.56, marking a 2.91% upside from current levels.