Citigroup reported that they have maintained their current rating on General Electric Company( GE ) and have lowered its price target Friday.
The firm has reported that they are reaffirming a "Buy" rating for GE, and have cut its price target from $25 to $24. This price target suggests a 16.6% increase over the stock's current price of $20.
An analyst from the firm commented, "we are lowering our estimate from $1.75 to $1.70 to reflect weaker end markets and organic revenue growth next year, plus a more conservative forecast for GECC. Our estimates incorporate 96 bps of operating margin expansion from 2011 to 2013, consistent with its target for 80-120 bps over this two-year period. Our 2013 estimate incorporates a 3% increase in GECC net income and a 12% increase in GE Industrial operating profit for total EPS growth of 13% (including the impact of buybacks)."
General Electric shares were mostly flat during Friday morning trading. The stock is up 11.73% YTD.
The Bottom Line
Shares of General Electric ( GE ) have a 3.39% dividend yield, based on last night's closing stock price of $20.06. The stock has technical support in the $18-$19 price area. If the shares can firm up, we see overhead resistance around the $22-$23 price levels.
General Electric Company( GE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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