Analyst Sees A Better Year For GE Investors (GE)

Stern Agee’s Ben Elias continues to see a good 2012 for General Electric Co. (NYSE: GE).  The firm sees a two punch combination leading to 2012 outperformance: shrink GE Capital and expand energy margins.  The firm has reiterated a BUY rating but it is also showing a price target objective of $22.75. GE is up almost 3% on the day to kick off the new year.  in recent weeks, we added it to the 24/7 Wall St. 2012 Model Dividend Portfolio and that was shortly before he company came out with the unexpected news that it was going to raise its dividend yet again.  We had expect that GE would hike its dividend, but not again until mid-2012.

The report noted, “If we discard GE management’s ever optimistic view, industrial orders, pricing GE Cap funding and origination leave reassured that GE is now better positioned for growth and profitability than it has been in the last 4 years. Yet, investor skepticism runs high and we highlight the following critical factors that will likely lead to multiple expansion and share price appreciation in 2012.”  It noted that GE is as follows:

• GE Capital Lean and Hungry
• The GE Cap Dividend
• Industrial Targets

As far as the $22.75, Thomson Reuters has a mere $20.98 price target or a target that makes Stern Agee about 8% higher than consensus expectations.