Citi Reiterates Buy Rating On GE

General Electric GE did not repeat its blow-out 4Q10 results, Citi reports, “and the 5c beat (arguably with 4c-5c of gains, partially offset) was unenthusiastically greeted with a 2.2% stock price decline.” “Industrial is still leaning against the familiar late-cycle headwinds in Energy, but the recovery took another step forward with 5% organic revenues, 13% order growth, and an uptick in backlog,” Citi writes. “We still like the set up for a strong 2012 earnings rebound. For 2011, the earnings growth driver continues to be GE Capital, as it posted another sequential improvement in key credit metrics. “Underscoring its capital allocation commitments, CEO Jeff Immelt & team tossed in a surprise 1c dividend boost, taking the yield up to 3.0%, there is still ample cash for buybacks. We are increasing our 2011 estimate to $1.40 to account for the 5c 1Q beat, and maintain our $25 price target, implying a compelling 30% upside.” Citi reiterated its Buy rating on shares of General Electric, which closed Thursday at $19.95.