Deutsche Bank Lowers Estimates and Price Target on General Electric (GE)

December 3, 2008 2:55 PM EST

Earlier, Deutsche Bank lowered estimates and its price target on General Electric (NYSE: GE), following the company's update on its GE Capital unit yesterday. The firm cut 2008 EPS estimates 8% to $1.80 and cut 2009 EPS estimates 23% to $1.40. The firm's lowered 2008 estimates reflects the disclosed $1.4B charge. The firm's lowered 2009 estimates reflect their updated GE Capital targets and a more bearish outlook for the industrial franchise.

The firm noted that yesterday's rally was related to a reaffirmation of GE's AAA rating by Moody's and the company's reiteration of its $1.24 per share dividend payout for '09.

The firm said the conference call was successful in stabilizing market sentiment on GE Capital. They said, "The GE Capital conference call succeeded in stabilizing market sentiment on GE Capital, by dismissing the likelihood of significant goodwill and asset impairments, lowering 2009 term debt and CP refunding requirements by $50bn in aggregate (largely via increase in deposit base and collections in run-off businesses), refuting the need for further external capital injections and reiterating its commitment to a considerably narrower and lower risk financing strategy."

Deutsche Bank cut its price target on GE to $18 and reiterated their Hold rating on the stock.

Shares of GE are 1.8% today to $17.92.

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