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UBS Slaps Short-Term Sell on GE (GE), Says AAA Rating and Dividend At Risk

January 21, 2009 9:12 AM EST
GE Hot Sheet
Rating Summary:
    9 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
Once the bluest of the blue chips, General Electric (NYSE: GE) can not seem to get a break anymore. Today, analysts at UBS slapped a "Short Term Sell" on GE, saying the company's AAA rating and the company's dividend is at risk. The firm also lowered their price target from $18 to $12.

UBS said reserves for GE Capital are too low and they expect credit losses to far exceed GE's forecast.

UBS also said GE's AAA rating is at risk. They also say GE might have to consider either cutting its dividend or raising additional capital.

UBS cut their 2009 EPS estimate on GE from $1.40 to $1.05 and 2010 from $1.50 to $1.40.

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