Analysts Agree That General Electric (GE) Is Stabilizing

A few analysts weighed in today on General Electric's (NYSE: GE) Q3 earnings results, which were reported on Friday. The analysts generally agree that signs of stabilization are abound, but while one firm is telling clients to Buy the other is telling them to Hold.

Analysts at Goldman Sachs maintained their Buy rating and $18, saying their results support their view that the GE story continues to stabilize. Highlights the firm cited included cash flow that was 26% above their estimates at $4.4 billion; industrial EPS of $0.21, which was 3 cents above their estimate; Industrial equipment orders up 9% sequentially and expected to rise again in Q4. The firm bumped their 2009 EPS estimates from $1.02 to $1.03 and 2010-2011 EPS remains unchanged at $0.92 and $1.33.

Analysts at Deutsche Bank said they were encouraged by signs of stabilization in the industrial backlog and Capital NPAs. Moreover with strong cash flow and the possibility of NBCU/Security monetizations, the firm believes GE could exit 2010 with approx. $15 billion surplus capital giving management elements of flexibility scarcely imaginable 6 months ago. The firm raised their price target from $17 to $18, but stuck with their Hold rating. The firm's FY09 and FY10 EPS estimate were largely unchanged at $0.99 and $0.84, respectively.

Shares of GE are fractionally lower today at $15.97 after falling 3% on Friday.

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