UPDATE: Nomura Reiterates Neutral Rating, Raises PT on General Electric Company as Retail Exit Benefits Mix but Pressures EPS

In a report published Monday, Nomura analyst Shannon O'Callaghan reiterated a Neutral rating on

, and raised the price target from $23.00 to $27.00. In the report, Nomura noted, “This last big step to reset GE Capital is something we first suggested in May 2012 as a way to remix GE's earnings, so it has been a long wait, but it is finally here. Completing the remix will take time and EPS growth is expected to be single digits in 2014-15, but resetting GE's earnings mix and earnings base were necessary steps in our view. As a result of the Retail exit as well as lower expected gains in the Real Estate equity book, GE Capital's earnings are expected to decline to ~$7B in 2014 and ~$5B in 2015. We raise our price target to $27 based on 17x our 2014 GAAP-pension EPS estimate.” General Electric Company closed on Friday at $27.20.