Analyst cuts GE rating on slowing order growth
NEW YORK (AP) — Shares of General Electric Co. fell more than 3 percent Monday as an analyst lowered his rating on the industrial company on slowing order growth.
THE SPARK: GE reported on Friday that its infrastructure orders declined 5 percent in the period. The company posted a 1 percent drop-off in the second quarter.
THE ANALYSIS: Richard Tortoriello of S&P Capital IQ cut GE to "Hold" from "Buy" on the order drop-off. The analyst said in a client note that the company's quarterly operating earnings of 33 cents per share were below his estimate of 42 cents per share. Tortoriello reiterated a $24 price target.
Credit Suisse's Julian Mitchell trimmed the company's price target to $24 from $25 and kept an "Outperform" rating. The analyst said the company should be able to outperform in a sluggish economy because of its high service content, market share gains and the likelihood that the aviation sector will recover next year.
SHARE ACTION: GE's stock dropped 71 cents, or 3.2 percent, to $21.32 in afternoon trading. The shares have traded in a range of $14.68 to $23.18 over the past year.