Bank of America Reiterates Buy Rating, $25 PT on General Electric Company on Announced NBCU Sale
In a report published Wednesday, Bank of America reiterated its Buy rating and $25.00 price target on General Electric Company (NYSE: GE).
Bank of America noted, “GE announced the divestiture of the remaining 49% stake in NBCU for $18.1bn, which we expected to be more of a ‘14 story. GE Industrial will receive $16.7bn for the equity stake in NBCU JV ($12bn cash+$4bn Comcast guaranteed debt+ $0.7bn preferred). GECC will receive $1.4bn for NBCU-occupied properties. The deal is expected to close by the end of 1Q13, and we estimate total Industrial after-tax cash proceeds of $13.5bn. The divestiture accelerates GE's capital redeployment story ahead of our expectations, with announced share repurchase program raised from $15bn to $35bn with ~$23bn currently remaining under authorization. GE now expects to repurchase ~$10bn in '13, more than double our current forecast of $4bn. Upside is also likely to our '14 buyback forecast of $5bn.”
General Electric Company closed on Tuesday at $22.58.
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