Morgan Stanley Expects In-Line 3Q14 Earnings For General Electric Company

In a report published Monday, Morgan Stanley analyst Nigel Coe reiterated an Equal-Weight rating and $28.00 price target on General Electric Company (NYSE: GE).

In the report, Morgan Stanley noted, “We model roughly $37bn revenues and EPS of 37c – roughly in line with expectations. While we expect healthy industrial organic growth of 5-6%, we look for limited OM expansion (10-20bps) as price/cost benefits flatten and on price/mix headwinds at P&W, Aviation and Healthcare. CFOA will be an unusual area of focus given just $3.4bn 2Q YTD vs. $14-17bn plan with 2H ramp-up contingent on backlog conversion and w/cap benefits. We look for mid-single digit order growth on Aviation and Transportation strength, but look for continued challenges in O&G and P&W, where we would expect to see the impact of geopolitical volatility.”

General Electric Company closed on Friday at $24.27.