Outperform Rating On General Electric Company (GE)

Bernstein Research Maintains Outperform Rating On General Electric Company (GE)

Analysts Steven E. Winoker and David Abrameto at Bernstein Research have released an update on General Electric Company (NYSE: GE).

GE will report its first-quarter earnings on April 16. Analysts expect the company to report EPS of $0.17 in its first-quarter. Industrial gross margin is expected to be at 25%-26%, while operating margin is expected to be at 10%-11%. Analysts expect GE to report consolidated revenue of $36.7 billion in the quarter.

Analysts at Bernstein Research have maintained their Outperform rating and $20 price target for General Electric Company.

The GE call warrant listed on KLSE, GE-C1, has jumped around 50% since February 2010. With GE-C1's discount status (discount around 3%) and positive rating of GE, GE-C1 would be considered as a good yet safe trading bet. Even if GE were to move side way, GE-C1 should provide us with a profit of 10% (3% discount x 3.3 gearing). Currently, GE-C1 is priced at RM0.145. The fair value would be RM0.16 if GE is to move side way.


Ok, good luck.

GOon