GE's shares were down over 2% in late morning trading, to $21.28, while the broad indices all showed slight declines.

Nomura analyst Shannon O'Callaghan has a neutral rating on General Electric, and in a note to clients Monday morning said "Power & Water margins of 14.9% in 1Q were down 320 bps y/y on lower gas and wind turbines as well as lower European service (low utilization), but the company is planning on flat margins for the year in the segment, requiring sharp improvement from here."

"We see potential risk to these targets," O'Callaghan wrote. He also lowered his EPS estimate for GE in 2013 to $1.67 from $1.70, while lowering his 2014 EPS estimate to $1.81 to $1.87. O'Callaghan also lowered his price target for GE by a dollar, to $23.00.

GE's shares returned 4.5% year-to-date through Friday's close at $21.75. The shares trade for 11.8 times the consensus 2014 EPS estimate of $1.84, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is $1.67.

Based on a quarterly payout of 19 cents, the shares have a dividend yield of 3.49%.

GE Chart GE data by YCharts

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.


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 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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