Diversified conglomerate General Electric Company (GE) on Thursday caught some continued positive commentary from analysts at Nomura Securities.
The firm maintained its “Buy” rating on GE as well as its $22 price target, which implies a potential 15% upside to the stock’s Wednesday closing price of $19.18.
A Nomura analyst commented, “Last week, in our note entitled Dividend Positive; Now It’s Time to Fix the Mix, we floated the idea that GE could fix its earnings mix by exiting its Retail Finance business. The message from GE at the EPG conference sounded open to our view at the right time/terms. We think it signals that the patient investor can have confidence that there is a route to shrinking GE Capital down to a commercial-focused lender representing closer to 30% of GE earnings, which we think could get GE its industrial P/E back. GE also solidified the entire $4.5bn special dividend in 2012 will go to share buyback.”
General Electric shares were mostly flat in premarket trading Thursday.
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 3.55% dividend yield, based on last night’s closing stock price of $19.18.
General Electric Company (GE) is a “Recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5out of 5 stars.