CreditSights' comments come a day after GE's CEO Jeff Immelt shared his views on GE's outlook at an annual investors conference.
"GE will likely undertake an all-inclusive, but balanced path to enhance shareholder value that possibly could result in selective share buybacks and increased dividends in addition to still conducting large M&A transactions," says CreditSights.
The research firm says it believes all of this can be achieved in a balanced way without damaging GE's credit profile. CreditSights maintains its overweight recommendation on GE's credit going into 2010.At the conference yesterday afternoon, Immelt provided an upbeat 2010 outlook amid stabilizing conditions at GE's financing arm, GE Capital, and the changes the company made to its industrial business portfolio primarily through its recent Comcast-NBC Universal joint venture and sale of its security business. In 2010, according to Immelt, GE plans to redeploy its strong free cash-flow along with proceeds from the sale of businesses that brought in a total of $25 billion. GE's stock is trading flat at $15.80. Citigroup (C), which competes with GE Capital in some business ilnes, is down 0.6% at $3.50. American depositary receipts of the Dutch conglomerate Koninklijke Philips (PHG) have lost 0.7% at $29.30, while Siemens' (SI) ADRs added 1.6% to $89.69. -- Reported by Andrea Tse in New York >>See our new stock quote page. Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV