Analyst Scott Davis says he cut the $1.79 2003 earnings per share estimate to $1.70, and trimmed the 11% growth rate to 9%. Davis says he sees $1.65 2002 earnings per share; he set a $1.85 2004 estimate.
Davis says his actions reflect his concern relating to the pace of an economic recovery, further deterioration in key long cycle markets (power and aerospace), and concern over losses in GE Capital's portfolio. He says third quarter plastic volumes and pricing are weak, and that the timing of a recovery is unclear. He adds that the rest of the short cycle is mixed; strength in GE's NBC and appliances unit were offset by continued weakness in lighting and industial products.
Davis cut the $36 target to $27. He rates the shares as equal-weight; and he says he'd be more interested in the stock at around $21.