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Nomura Securities Remains Positive on General Electric; Reaffirms “Buy” Rating (GE)

Posted: 10/22/2012 10:42:00 AM
Referenced Stocks: GE

Analysts at Nomura Securities remain optimistic on General Electric Company ( GE ) despite the stock being under pressure after the release of a lackluster third quarter earnings report last week.

Nomura Securities maintains its "Buy" rating, but revised its price target for the technology and financial services giant to $24 from $25. The new target is a +9% upside from Friday's closing price of $22.03.

"Segment profit came in a little light of our estimates, offset by lower corporate, which is not great, but GE checked the important boxes in the quarter with industrial margins turning positive, order growth ex-wind ex-fx up 4%, and GE Capital declining to 44% of earnings," said analyst Shannon O'Callaghan.

"In total, there were some puts and takes in the quarter, but industrial margins (going up) and GE Capital earnings mix (going down) are both headed in right direction, in our view," he added.

GE shares were down 33 cents, -1.50%, in morning trading on Monday.

The Bottom Line
Shares of General Electric ( GE ) have a 3.09% dividend yield, based on Friday's closing stock price of $22.03. The stock has technical support in the $19-$20 price area. If the shares can firm up, we see overhead resistance around the $70-$74 price levels.

General Electric ( GE ) is not recommended at this time, holding a 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 .