S&P Capital IQ Reiterates its BUY Rating on General Electric, Target Price Reduced

October 24 00:00 2011

NEW YORK, October 24 (RainbowNewsLine.com) – Analyst Richard Tortoriello of S&P Capital IQ reiterates his BUY rating on the shares of General Electric (NYSE: GE), while reducing his estimates for the company. The 12-month target price has been reduced from $24 to $20.

Analyst Richard Tortoriello, in a research note published on October 22, mentions that the company reported its Q3 EPS inline with the consensus and marginally ahead of the estimates. GE posted 8% and 6% growth in organic sales and orders, respectively, the analyst says. GE is performing well with growth in all segments, except energy due to pricing concerns, the analyst adds. The EPS estimate for 2011 has been reduced from $1.35 to $1.27 to reflect the preferred shares redemption charges in Q3, while the EPS estimate for 2012 has been reduced from $1.63 to $1.45 on US/ European economic stagnation, according to S&P Capital IQ.