Goldman Sachs Maintains Bullish View of GE (GE) Following "Solid" Q4 Results

Goldman Sachs reiterated their Buy rating and $21 price target on General Electric (NYSE: GE) following "solid" Q4 results Friday which the firm said reinforces their positive outlook on the stock.

The firm said industrial equipment book-to-bill of 1.23x reinforces the outlook for double-digit EPS growth in 2012. The 5% miss on industrial revenue was largely on timing in Energy. While industrial margins were above their exceptions order price weakens remains a risk, the firm notes.

Shares have strongly outperformed since the start of December and Q4 trends suggest more upside to GECS 2012 estimates. That said, the timing of Fed approval for a GECS dividend, a key catalyst, is now more uncertain and Energy pricing remains a risk, the firm notes.

Goldman lowered Q1 EPS estimates from $0.35 to $0.32, saying industrial margin expansion could be back-end loaded. However, long-term positive trends remain with strong visibility into multi-year double digit EPS growth, cash returns to shareholders, a hefty 3.6% dividend yield and a underweight position in large-cap mutual funds.

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 $19.15 yesterday.

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