GE shares surge after longtime analyst Jeffrey Sprague gives his first buy rating in a decade

General Electric shares rallied on Wednesday after longtime analyst Jeff Sprague raised his rating on the embattled industrial conglomerate's stock to buy.

It's the first time in more than a decade that he's recommended clients purchase the stock.

"After 10 years on the sidelines we are upgrading GE to buy," the Vertical Research Partners analyst said. "We see a path to create equity value."

"It took GE at least 20 years to dig this hole and it will not get out in a year or two ... While the work ahead is still hard, we think the lack of investor confidence will slowly subside," Sprague added.

GE shares rose 5.2 percent in premarket trading from Tuesday's closing price of $7.27 a share.

Vertical Partners also raised its GE price target to $11 a share from $10 a share.

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