Morgan Stanley analyst Nigel Coe provides commentary on shares of General Electric Company (NYSE:GE) ahead of the company’s third quarter results on October 21, after market close. For now, Coe reiterates an Equal Weight rating on shares of GE with a $32 price target, which represents a 2% increase from where the stock is currently trading.

Coe believes, “[…] stronger Power trends largely explain the organic bridge in 2H, with strong a backlog and easier comps,” but that “the world is ‘no better, no worse.'” However, the analyst does praise GE’s engine monitor ram up for making positive strides with data acquisition and enhanced functionality for its service platforms and contracts. As far as backlog weakness, Coe attributes this to timing.

Ultimately, Coe anticipates improvement in GE’s operating profits, though, “Power and Renewables are strongest in 4Q and drive a lot of the ramp.” “Despite a flat start to the year,” Coe has faith in the company’s segment margin improvement.

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“In 1H16, the company saw about $300m of benefits from restructuring. Management is still pushing hard for $800m of cost-out for 2016. If volume trends and the demand outlook stays about as expected, then $500m of incremental cost out in 2H16 should have a meaningful impact on EBIT,” he concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, three-star analyst Nigel Coe is ranked #1,866 out of 4,129 analysts. Coe has a 55% success rate and realizes 1.5% in his annual returns. However, when recommending GE, Coe loses 1.4% in average profits on the stock.

TipRanks analytics indicate GE as a Buy. Based on 14 analysts polled in the last 3 months, 7 rate a Buy on GE, 5 maintain a Hold, while 2 issue a Sell. The consensus price target stands at $32, marking a slight 2% upside from where the shares last closed.