JP Morgan analyst Stephen Tusa today raised his price target on General Electric (GE) to $20 from $17 a day after CEO Jeff Immelt laid out the company’s outlook for 2010. The Street is underestimating potential at GE’s capital finance unit, writes Tusa, and he raised his 2009 earnings estimate to $1 per share from 95 cents, and his 2010 estimate to 92 cents from 70 cents. Tusa’s price target is based on nine times his 2013 estimate of $1.80 per share.
Tusa notes that in contrast to worries about GE’s liquidity, Immelt actually spoke quite a bit about buybacks and dividend increases being “on the table,” yesterday, although he adds that GE’s focus at present is really on acquisitions. Immelt denied an interest in Rockwell Automation (ROK), amidst speculation GE might buy the firm, but Tusa thinks it’s still a good fit for GE.
Goldman Sachs’s Terry Darling also raised his target from $18 to $20.
GE shares today are off 4 cents, or .25%, at $15.71.
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