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General Electric’s Target and Estimates Cut at Goldman Sachs (GE)

By: Dividend.com
Posted: 7/12/2010 9:24:00 AM
Referenced Stocks: GE

Multinational manufacturing conglomerate General Electric Company ( GE ) saw its price target and earnings estimates lowered on Monday by analysts at Goldman Sachs.

The firm reduced its price target on GE to $18, which still represents a potential 20% upside to the stock's Friday closing price of $14.95. Goldman also cut its earnings estimates for the company, citing lesser industrial expectations, along with higher currency and pension costs.

Still, the analyst maintained its "Buy" rating for GE.

General Electric shares were mostly flat in premarket trading Monday.

The Bottom Line
We recently removed shares of GE from our recommended list back on June 8, when the stock was trading at $15.41. The company has a 2.68% dividend yield, based on Friday's closing stock price of $14.95. The stock has technical support in the $13 price area. If the shares can firm up, we see overhead resistance around the $16-$17 price levels. We would remain on the sidelines for now.

General Electric Company ( GE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 .