Nomura Maintains a “Buy” on General Electric; Sees 14% Upside (GE)

Share |

Multinational conglomerate General Electric Company ( GE ) on Monday saw its "Buy" rating reiterated by analysts at Nomura Securities.

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 $1.75."

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 ( GE ) 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 ( 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 The NASDAQ, Inc.

Created by

This article appears in: Investing , Stocks

Referenced Stocks: GE

More from

Related Videos




Most Active by Volume

  • $13.01 ▲ 9.97%
  • $5.37 ▲ 4.07%
  • $15.75 ▲ 0.38%
  • $27.77 ▲ 1.76%
  • $10.18 ▼ 0.59%
  • $9.72 ▲ 11.85%
  • $110.78 ▼ 0.48%
  • $3.89 ▼ 0.51%
As of 10/7/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by