In a research report published today, Oppenheimer analyst Christopher Glynn reiterated a Perform rating on General Electric Company (NYSE:GE), as the company is expected to exit from its finance business by shedding GE Capital. The company expects to get approximately $35 billion in dividends from GE Capital from this plan. No price target was provided.
Glynn wrote, “With about 75% of capital earnings moving to discontinued operations, we are reducing ’15E EPS to $1.28 from $1.73 and ’16E to $1.55 from $1.80. The plan funds significantly accelerated share repurchase toward later 2016 through 2018.” Furthermore, “We assess that GE targets about 9-10% industrial earnings growth annually through 2018 and roughly $0.35 accretion from share repurchase, with a goal for over $2.00 of EPS by 2018.”
General Electric shares are currently trading at $27.77, down $2.60 or 0.74%.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Glynn has a total average return of 8.2% and a 62.8% success rate. Glynn has an 19.6% average return when recommending GE, and is ranked #401 out of 3574 analysts.