Nomura Securities Maintains a 'Buy' on General Electric (GE); Q1 Review

Nomura Securities maintains a 'Buy' on General Electric (NYSE: GE) price target of $22.00.

Analyst, Shannon O'Callaghan, said, "GE beat our 1Q12 estimate by a penny, driven by a lower tax rate at GE Capital. Industrial organic growth was strong +11%, with organic orders +14%. Real Estate earnings turned positive, which is good, but also helped bring GE Capital earnings to 50% of total in the quarter, higher than we would like. Margins on the Industrial side declined 50bp y/y and missed our estimate, although management reiterated its expectation for 50bp Industrial margin growth for the year. New order pricing was up 50bp and Energy orders pricing turned positive, +0.2%, with Thermal equipment -1.1%, showing bottoming there. Our $22 price target represents approximately 12.5x our 2013 EPS estimate of $1.75."

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 $19.36 yesterday.

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