Bank Of America Weighs In On General Electric Possibly Leaving CLL Segment
Bank of America issued a report on General Electric Company (NYSE: GE) after news was released that the company may exit the commercial leasing and lending (CLL) segment. Bank of America rates General Electric as a Buy with a $31 price target.
Analyst Andrew Obin wrote, "We expect the debate over GECC future to get more of investors' attention over the coming year with the closure of the Alstom acquisition and the full exit of Synchrony, which will highlight over-capitalized balance sheet at GE Capital...there is up to $25bn of excess capital, which could get more of investors' attention with rising debate of GECC future."
Industry experts believe that regulatory oversight under the SIFI designation is the primary catalyst for the potential exit. The exit of the commercial leasing and lending segment would effectively make the company a pure Industrial name and could focus industrial investors on the company's potential value.
Shares of General Electric recently traded at $25.18, down 0.87 percent.
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