We have greater confidence in General Electric’s (GE) path to recovery, and the company’s deleveraging efforts have progressed further than we initially expected. However, the bear case continues to cast doubt over the industrial conglomerate’s future. We think GE has appreciable value that bears fail to acknowledge. We’ve concluded that GE Aviation is worth far more than bears give it credit for, mostly because we believe they underestimate the contribution from narrow-body aftermarket sales. GE Healthcare has outperformed analyst expectations during the pandemic, and we think its expertise in the diagnostic imaging markets positions it to address some of the industry’s most pressing challenges and promote continued growth and margin expansion even after the sale of GE Biopharma.