UPDATE: Citigroup Reiterates on General Electric Following Analyst Meeting

In a report published Monday, Citigroup analyst Deane M. Dray reiterated a Buy rating on

, and raised the price target from $29.00 to $32.00. In the report, Citigroup noted, “GE Capital hosted a well-attended analyst meeting on Nov-15, reaffirming its longer term roadmap to resize GE Capital to the targeted earnings mix of 70% medium-tech industrial and 30% finance. Consistent with CEO Jeff Immelt's commentary at the EPG conference on May 22, GE announced plans to spin the North America Retail Finance business (30% of GE Capital net income and 14% of total GE 2012 earnings) in a staged process. The plan calls for 20% of Retail Finance to be IPOed in late 2014 and then exit the 80% balance through a tax-free share swap in 2015. The company disclosed that GE Capital net income so far in 4Q13 is trending above the $2 bil target, but partially due to gains on asset sales. The company also announced plans for higher total GE ‘naked restructuring' in 2014, with $1.0-$1.5 billion of Simplification expenses and minimal one-time gains (as of now) resulting in a net 10c headwind. We are reducing our 2014 estimate from $1.80 to $1.70 accordingly. Valuing GE off our unchanged 2015 estimates, we are boosting our price target from $29 to $32; GE remains Buy-rated and our top pick.” General Electric closed on Friday at $27.20.