Jim Cramer said late Monday morning that investors should "buy GE's stock "right here," and that GE "will be, if I am right, the premier energy service company, after Schlumberger (SLB), in the world, after a few more acquisitions."
"There are all sorts of companies that GE could buy, to make a statement in this sector," Cramer said.
Credit Suisse analyst Julian Mitchell rates GE a "outperform," with a price target of $25, and in a note to clients on Monday called the Lufkin acquisition a "smart strategic fit."
"This deal more than doubles GE's current 5% share in Artificial Lift, giving it ~15% market share once the deal is completed," Mitchell wrote, adding that "the 13.5x EBITDA multiple paid... on 2013 estimates is slightly aggressive relative to other industrial transactions... [but] LUFK's attractive market share in artificial lift and competitive positioning suggests it should command some premium over an average deal."GE is scheduled to announce its first-quarter results on April 19, with the consensus among analysts polled by Thomson Reuters being earnings of 35 cents a share, compared to 44 cents a share during the fourth quarter and 34 cents a share in the first quarter of 2012. Shares of General Electric have returned 11% this year, following a return of 21% during 2012. The shares trade for 12.5 times the consensus 2014 EPS estimate of $1.85. The consensus 2013 EPS estimate is $1.67. Based on a quarterly dividend of 19 cents, GE's shares have a yield of 3.29%. At the end of 2012, General Electric was authorized by its board of directors to repurchase roughly $14.9 billion worth of common shares. The company's share buybacks during 2012 came to $5.2 billion. Interested in more on General Electric? See TheStreet Ratings' report card for this stock. -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV