Nomura Securities Maintains a 'Buy' on General Electric (GE); Highlights From Investor Day - Unlikely to See GE Capital Dividend

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

Nomura analyst, Shannon O’Callaghan, said, "GE Capital’s outlook leads to a 10%+ Basel 3 Tier 1 common ratio in 2012 and a hefty $50B-$60B of planned cash on the balance sheet at the end of 2012, against $35B of LT debt maturities in 2013 and 2014. They also have the support of the parent income maintenance agreement. In our view, this makes the reinstatement of the historical GE Capital dividend to the parent appear to be a reasonable request, but that’s not our decision to make. The Fed’s timeline on potential approval of a GE Capital dividend is a custom timeline not tied to any bank or CCAR timeline, and we think it could take a while. So, in our view, the capital is there but the catalyst is not, yet."

For an analyst ratings summary and ratings history on General Electric click here. For more ratings news on General Electric click here.

Shares of General Electric closed at $16.72 yesterday.

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