General Electric’s Target Raised at Nomura; Earnings Growth Looks Attractive (GE)


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Multinational conglomerate General Electric Company ( GE ) on Monday received some bullish commentary from analysts at Nomura Securities.

Following the company's recent Analyst Day event, the firm lifted its price target on GE from $22 to $25. That new target suggests a 10% upside to the stock's Friday closing price of $22.71.

A Nomura analyst commented, "We continue to see potential for GE to create value by further shrinking GE Capital as a percentage of GE. Now, we think industrial margin improvement can become an additional positive driver as the ramp in R&D crests and simplification results in lower costs. Industrial organic growth should be better than peers, supported by large backlogs, and GE's commitment to capital discipline via buybacks, $1-$3B sized acquisitions, and double-digit dividend growth in line with double-digit earnings growth all add up to an attractive formula, in our view."

General Electric shares posted small gains in premarket trading Monday.

The Bottom Line
We have been recommending shares of General Electric ( GE ) since Dec.9, 2011, when the stock was trading at $16.80. The company has a 2.99% dividend yield, based on Friday's closing stock price of $22.71

General Electric Company ( GE ) is a "Recommended" dividend stock, holding a DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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