Nomura Securities Maintains a 'Buy' on General Electric (GE); Positive on Dividend, But Earnings Mix an Issue

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

Analyst, Shannon O'Callaghan, said, "The restoration of a 30% GE Capital income dividend plus special dividend confirmed the excess capital thesis we first published in October 2010. While sending cash to the parent and shrinking the real estate equity and mortgage books helps gradually, a more sizable shift in the GE earnings mix away from Capital and towards Industrial could be achieved by exiting Retail Finance (one-third of GE Capital earnings by our estimates). Conditions might not be right for such a deal to happen for a while, but we think it could solve the GE earnings mix issue and lead to a better P/E."

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 $19.00 yesterday.

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