Information Provided By:
Fly News Breaks for June 22, 2018
GE
Jun 22, 2018 | 09:40 EDT
Goldman Sachs analyst Joe Ritchie sees three key risks that continue weighing on shares of General Electric - fears about another dividend cut, worries about a credit rating downgrade and tail risk associated with the assets remaining in GE Capital. Given that GE needs to shore up its balance sheet to mitigate the risk of a credit rating downgrade, Ritchie contends that the company should consider suspending its common dividend for the next 18 months. Together with GE's announced divestitures, a dividend suspension would not only satisfy short-term financing needs but would give management a better chance to take a longer-term view on the rest of its portfolio and operations, argues Ritchie, who has a Neutral rating and $14 price target on GE shares.