Nomura Securities Maintains a 'Buy' on General Electric (GE); Addressing Our Retail Finance Mix Fix Idea

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

Analyst, Shannon O'Callaghan, said, "Last week, in our note entitled Dividend Positive; Now It’s Time to Fix the Mix, we floated the idea that GE could fix its earnings mix by exiting its Retail Finance business. The message from GE at the EPG conference sounded open to our view at the right time/terms. We think it signals that the patient investor can have confidence that there is a route to shrinking GE Capital down to a commercial-focused lender representing closer to 30% of GE earnings, which we think could get GE its industrial P/E back. GE also solidified the entire $4.5bn special dividend in 2012 will go to share buyback."

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 $19.18 yesterday.

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