Multinational conglomerate General Electric Company (
) on Monday saw its "Buy" rating reiterated by analysts at Nomura
The firm also backed its $22 price target on GE, suggesting a
14% upside to the stock's Friday closing price of $19.36.
A Nomura analyst commented, "GE beat our 1Q12 estimate by a
penny, driven by a lower tax rate at GE Capital. Industrial organic
growth was strong +11%, with organic orders +14%. Real Estate
earnings turned positive, which is good, but also helped bring GE
Capital earnings to 50% of total in the quarter, higher than we
would like. Margins on the Industrial side declined 50bp y/y and
missed our estimate, although management reiterated its expectation
for 50bp Industrial margin growth for the year. New order pricing
was up 50bp and Energy orders pricing turned positive, +0.2%, with
Thermal equipment -1.1%, showing bottoming there. Our $22 price
target represents approximately 12.5x our 2013 EPS estimate of
General Electric shares fell 36 cents, or -1.8%, amid a wide
market pullback in morning trading Monday.
The Bottom Line
We have been recommending shares of General Electric (
) since Dec.9, 2011, when the stock was trading at $16.80. The
company has a 3.51% dividend yield, based on Friday's closing stock
price of $19.36.
General Electric Company (
) is a "Recommended" dividend stock, holding a Dividend.com 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
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