UPDATE 1-RESEARCH ALERT-JP Morgan upgrades GE to overweight

martedì 8 settembre 2009 13:12
 

Sept 8 (Reuters) - J.P. Morgan Securities upgraded General Electric Co (GE.N: Quotazione) to "overweight," and said it was one of the last stocks for which a little good news could still go a long way.

Analyst Stephen Tusa said concerns, including provision levels and rising funding costs, still remain about GE Capital Services, but said on a call he expects "a $10 billion capital infusion at some stage over the next couple of years." Tusa, who earlier rated the stock "neutral," said the stock is more likely than others to build momentum on its way up and any positive news on fundamentals could be magnified.

"In the look for non-consensus, catch-up stories, GE stands out as the last, in our view," Tusa wrote in a note to clients.

Signs of life in media mergers and acquisitions may rekindle hopes of a strategic move at the largest U.S. conglomerate's NBC Universal, Tusa said. Tusa raised his price target on the stock to $17 from $12.

GE shares rose 4 percent to $14.40 in trading before the bell. They closed at $13.87 Friday on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay and Tenzin Pema in Bangalore; Editing by Anne Pallivathuckal)