UPDATE: Oppenheimer Raises Target to $21 on General Electric, Maintains Outperform
Oppenheimer reiterates its Outperform rating on General Electric (NYSE: GE) and raises its price target to $21 from $20 on valuation inputs.
Oppenheimer says, "We are maintaining '12E EPS of $1.50, up 10% y-o-y, vs. guidance for double-digits earnings growth. We pinpoint our conservatism as modeling 8.5% industrial revenue growth (including nearly 2% from acquisitions), vs. 5-10% industrial organic guidance. Energy orders in 2011 increased 31% y-o-y (9% organic) and O&G by 64% (14% organic), supporting about 114% Energy Infrastructure b:b. Aviation had about 1.2x b:b, Transportation expects double-digits revenue growth and we model 30 bps industrial OM expansion vs. 50 bps guidance. Our 1Q12E EPS for flat at $0.33 reflects a tough comparison against 3c gain LY from sale of Garanti and 1c NBCU."
GE closed at $19.15 a share on Monday.
