GE and Siemens Gamesa settle their problem. But something else is more important to GE stock.

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General Electric

and Siemens Gamesa Renewable Energy have been fighting back and forth over wind power patents for years. That seems to be over. GE stock could get a boost on Friday, but not on any comparisons.

GE (ticker: GE) announced that it reached an “amicable” settlement with Siemens Gamesa regarding “all of their wind turbine patent disputes in the United States and Europe on confidential terms, and has cross-licensed each other and their respective subsidiaries worldwide under the asserted patent families for the lives of those patent families.” ”

Patent disputes for industrial companies do not usually affect stock prices. Neither should this agreement.

Still, it’s a small benefit, and now both companies can focus more on getting their respective wind power businesses back on track. The wind industry struggles with inflation and fluctuating government support for renewable energy projects.

Siemens Gamesa reported an operating loss of €581 million on sales of €9.8 billion for the 2022 fiscal year. Revenue fell 4% year over year. It was the second operating annual loss in a row.

Siemens Gamesa’s fiscal year ended in September. The company was essentially taken over by

Siemens energy

(ENR.Germany) end of 2022 and the wind business will be reported by this company in the future.

For its part, General Electric reported a $2.2 billion loss at its wind business in 2022, larger than the $795 million loss in 2021. GE expects its wind business to continue making losses in 2023.

The bigger deal for investors on Friday is a change in price target by Morgan Stanley analyst Joshua Pokrzywinski. He increased his price target for GE from $90 to $110 a share. He maintained his buy rating on the stock and believes there is still value to be unlocked when GE’s power business is spun off from GE Aerospace in early 2024.

It seemed like time to fish Pokrzywinski or cut bait. GE stock traded at $94.64, ahead of analysts’ old price target. GE stock has had a very strong start to the year, and is up about 45% so far in 2023.

Pokrzywinski is not alone. His competitors also had to shift their price targets. Overall, the average price target for GE stock has increased by about $24 per share over the past three months, from about $74 to $98 per share.

Wall Street has chosen to remain bullish as the stock price rises. Two-thirds, or 67%, of the analysts covering the stock price buy stocks. The average buy rating ratio for stocks of

S&P500
is about 58%.

GE stock was up 0.9% on Friday. The

S&P500
And

Dow Jones industry average
both increased by about 0.5%.

Write to Al Root at allen.root@dowjones.com