Nomura Securities Maintains a 'Buy' on General Electric (GE); Q3 Review

Nomura Securities maintains a 'Buy' on General Electric (NYSE: GE) price target of $20.00.

Nomura analyst, Shannon O'Callaghan, said, "GE reported 3Q11 EPS of $0.31, in line with our estimate and consensus of $0.31. Energy margins of 14.3% (versus our 15.7% estimate) disappointed in the quarter, partially the result of continued pressure in Wind. After a positive Energy meeting in September, the miss in Energy margins is disappointing. GECS PTPP missed us too, but the 9.6% Tier 1 is a positive there. The company is confident of double-digit earnings growth for 2012, the dividend is strong and likely to go higher, and we continue to think GECS has excess capital. Our $20 price target is based on 13x our 2012 EPS estimate of $1.50. We see excess capital, a growing dividend, and double-digit growth outlook as attractive, but Energy margins need to stop bleeding."

For more ratings news on General Electric click here and for the rating history of General Electric click here.

Shares of General Electric closed at $16.31 yesterday.

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