Tuesday, January 25, 2011

Sentiment on General Electric (NYSE:GE) Could Be Turning Point

General Electric (NYSE:GE) could be driven largely by investor sentiment going forward, according to Barclays, who sees that being the probable turning point for the conglomerate.

Barclays says, "Investors' sentiment on GE could be at a turning point: GE reported 4Q11 EPS of $0.36, a penny above our estimate and $0.04 above the Street. Importantly, a $0.10 benefit from IRS tax settlements and a lower tax rate from the delay of the NBCU deal were completely offset by corporate restructuring and the Hudson River Phase II charge. Overall we believe the strong results and absence of "quality of earnings" concerns could help drive positive investor sentiment to the stock as the Street starts to look past GE Capital and focus on the upside at Industrial over the next few years."

Barclays reiterates an "Overweight" rating on General Electric (GE), which closed Monday at $20.04, gaining $0.30, or 1.52 percent. Barclays increased their price target on GE from $20 to $22.

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