General Electric Company (NYSE:GE) announced an agreement to acquire two small European metal additive manufacturers for a collective, hefty price tag of $1.4 billion. William Blair analyst Nicholas Heymann finds it worthy to note that while the over billion-dollar acquisition might look costly for the industrial giant, GE has garnered $3 to $5 billion in internal savings from vertical integrating metal additive manufacturing coupled with an additional $1.8 billion in external sales by 2021.

Therefore, the company is anticipated for full recovery within three to four years, making this a strategic investment. As such, Heymann reiterates an Outperform rating on shares of GE with a $38 price target, which represents a 22% increase from where the stock is currently trading. The analyst maintains his 2016 EPS estimate of $1.56 as well as his 2017 EPS estimate of $1.90, which he contends GE can easily achieve.

Heymann believes, “Both acquisitions will expand GE’s foundational expertise in additive manufacturing equipment, materials, services, software, and production. The products of both companies are expected to ultimately incorporate Predix OS to facilitate GE’s move to digitize all its manufacturing processes.”

“Both acquisitions speed up the timetable for additive manufacturing to become a transformative technology to expand GE’s digital product design capabilities and flexibility. They also should accelerate the pace at which these processes can be readily commercialized following GE’s 2012 additive manufacturing acquisitions of Morris Technologies and Rapid Quality Manufacturing (RQM),” the analyst added.

The analyst predicts GE shares will jump to the higher range of $30s by either the end of this year or the start of 2017 on the heels of fourth-quarter results come January 2017, and has massive potential to hit a share price circling $60 within the next decade; the only industrial giant from Heymann’s perspective with the real possibility of accomplishing this feat.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, three-star analyst Nicholas Heymann is ranked #1,738 out of 4,147 analysts. Heymann has a 60% success rate and realizes 3.4% in his annual returns. When recommending GE, Heymann earns 6.9% in average profits on the stock.

TipRanks analytics exhibit GE as a Buy. Based on 12 analysts polled in the last 3 months, 6 rate a Buy on GE, 4 maintain a Hold, while 2 issue a Sell. The 12-month average price target stands at $32.00, marking a 3% upside from where the shares last closed.