Morgan Stanley estimates that the Aviation division's second-quarter profit will be $965 million, increasing from $862 million the previous quarter, and $959 million a year earlier.

GE Capital

Coe estimates that GE Capital's second-quarter revenue will be $11.7 billion, increasing from $11.4 billion in the first quarter, but declining from $12.4 billion during the second quarter of 2011. The analyst estimates that the finance segment will show a second-quarter profit of $1.8 billion, declining slightly from the previous quarter, but increasing from $1.6 billion a year earlier.

Coe said that Morgan Stanley's "lies in the potential for increasing loss provisions, driven by increasing delinquency ratios in Europe," with "32% of total financing assets" originated in Europe, according to GECC's most recent 10-K filing.

The analyst also said that "loss provisions look low from a historical standpoint, suggesting an upside bias in the event of a delinquency pick-up."

GE's shares closed at $19.82 Wednesday, returning 13% year-to-date, following a 1% return during 2011.

GE Chart GE data by YCharts

The shares trade for 11.5 times the consensus 2013 EPS estimate of $1.73. The consensus 2012 EPS estimate is $1.54.

Based on a 17-cent quarterly payout, the shares have a dividend yield of 3.43%.

Coe on Monday lowered his rating for General Electric to "Equal-Weight" from "Overweight," with a price target of $22, saying that "we move to the sidelines for now in light of recent outperformance and GE's premium valuation ex- GECC," adding that "we continue to view GE as an attractive cycle and cash story, but key catalysts " are "likely 2013 events."

Davis on Monday left his rating for GE unchanged at "Overweight," with a $22 price target, and said that "a sector-high dividend yield and a bullish view on US gas powergen tip us in favor of an Overweight rating on the stock," and that "potential catalysts include powergen orders picking up, further share repos, corporate dividend announcements, and potential portfolio actions."

Interested in more on General Electric? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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