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GE

General Electric

$22.85

-0.7345 (-3.11%)

10:11
10/20/17
10/20
10:11
10/20/17
10:11

General Electric CEO says dividend analysis will be presented in November

John Flannery is speaking on CNBC.

  • 20

    Oct

GE General Electric
$22.85

-0.7345 (-3.11%)

10/18/17
JPMS
10/18/17
NO CHANGE
Target $20
JPMS
Underweight
JPMorgan lists dividend cut to 60c, exiting Baker Hughes as options for GE
JPMorgan analyst C. Stephen Tusa, while continuing to believe shares of General Electric (GE) should go lower, thinks a "myriad of potential moves" from the company are forthcoming. Visibility around potential actions will improve starting this Friday with the earnings report, Tusa tells investors in a research note. The analyst believes potential steps by management include raising $8B of debt for pension funding, undertaking a restructuring to save $2B-$3B, exiting Baker Hughes (BHGE) via a share exchange and selling the Transportation unit for a combined $30B-$35B, and/or cutting the dividend to 60c per share from the current 96c. The latter would free up $3B in additional available cash flow per year, Tusa points out. The analyst keeps an Underweight rating on GE shares with a $20 price target.
10/20/17
DBAB
10/20/17
NO CHANGE
DBAB
Sell
Deutsche calls GE earnings miss 'shocking,' sees 'sizable' dividend cut
Deutsche Bank analyst John Inch calls General Electric's weaker than expected Q3 results this morning "shocking," noting earnings came in 20c below the 49c forecast while 2017 cash flow guidance was cut almost in half. The analyst points out the Industrial tax rate was a negative 4%. After subtracting up to $2B for required pension contribution and $3B-$4B in capital spending, GE "falls well short" of generating enough cash to pay its $8B common dividend from operations, which raises the prospects of a pending dividend cut and/or raising financial leverage to pay for the dividend, Inch tells investors in a research note. He believes the decline in earnings per share to just over $1.00 this year suggests that a "sizable dividend cut is pending." Inch believes the shares, at a 22 times price-to-earnings ratio, look "that much more expensive." He keeps a Sell rating on GE with a $21 price target. The shares in premarket trading are down 7% to $21.93.
10/20/17
SBSH
10/20/17
NO CHANGE
Target $31
SBSH
Buy
General Electric shares could be approaching a bottom, says Citi
Citi analyst Andrew Kaplowitz says this morning's earnings report indicates that the mounting challenges developing over time in General Electric's Power business now appear to be fully materializing. Investor expectations have been coming down and today's results can be viewed as a first step in a reset of expectations, Kaplowitz tells investors in a post-earnings research note. The analyst sees the stock coming under incremental near-term pressure, but thinks the shares "could potentially be approaching a bottom" as expectations begin to reset. Kaplowitz has a Buy rating on GE with a $31 price target. The stock in premarket trading is down 8% to $21.65.
10/20/17
JPMS
10/20/17
NO CHANGE
JPMS
GE management 'fighting to salvage value,' says JPMorgan
JPMorgan analyst C. Stephen Tusa says this morning's Q3 results from General Electric reinforce his view that while the "reset" of expectations is happening, a scenario of "lower for longer" looks increasingly more realistic. The analyst keeps an Underweight rating on the shares with a $20 price target. Management is "fighting to salvage value, not a simple restructuring," Tusa tells investors in a post-earnings research note. "The bottom line is that there are more questions than answers here," the analyst adds. He does not see how a "material dividend cut cannot be in the cards," with 65c in GAAP Industrial earnings and essentially no ongoing free cash flow at Industrial this year. General Electric shares in premarket trading are down 6% to $22.07.

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