GE (GE) Rises On Goldman Upgrade, But Another Firm Says More Capital Is Needed

Forgotten blue-chip stock General Electric (NYSE: GE) was en fuego today after brokerage titan Goldman Sachs lifted their rating on the stock to 'Buy', saying comments from Barney Frank suggested the government's financial system regulatory reform won't mandate the separation of GE Capital. A potential forced split-off of GE Capital has been an overhang on the stock, according to the broker.

Shares of GE traded up as much as 9% today on the upgrade, but sold off a touch toward the close. The stock finished up 6.9% on the session.

Toward the end of the session a report from independent credit research firm CreditSights started making the rounds. In the report, CreditSights started rattling the cage again on GE Capital's massive credit exposure. The firm said under a "severe case" GE Capital would need about $7.1 billion of capital this year and $7.6 billion next year, or a total of $14.7 billion, to cover $65.5 billion of losses on assets such as commercial real estate and credit cards. Under the firm's "base case" GE Capital would not need more capital this year, but will need about $3 billion next year.

Real-Time Market Moving News Two-Weeks FREE http://www.streetinsider.com/premium_content.php

You May Also Be Interested In

• Midday movers: Meta, IBM, Caterpillar fall; Chipotle rises
• GE Aerospace (GE) PT Raised to $211 at Goldman Sachs
• Joby Aviation (JOBY) Partners with Abu Dhabi to Establish Electric Air Taxi Ecosystem