Citi Reiterates Buy Rating On GE

Citi is reiterating its Buy rating on shares of General Electric GE. “GE's agreement to acquire Converteam for $3.2 billion represents its fifth bolt-on Energy deal in the past six months, consistent with management's initiative to allocate capital to its core infrastructure platforms,” Citi writes. “Valuation looks full at 2.4x trailing sales of $1.5 billion and 14.9x EBITDA, but would equate to about 12.5x on 2012 including topline growth and $30 mil in cost synergies. GE is acquiring a 90% interest, with the right to acquire the remaining 10% from management over 2-5 years.” General Electric closed Tuesday at $19.86.