Goldman Keeps GE on Recommended List

Analyst Martin Sankey says GE, American Standard, Cooper Industries, Emerson Electric, and Watsco offer the best value in the electrical equipment group

Goldman Sachs reiterated its recommended list rating for General Electric (GE ) and American Standard (ASD ).

Analyst Martin Sankey says he issued Electrical Equipment Quarterly report, which highlights theme that recently-issued indicators underscore his long-standing view of continuing weak demand for industrial capital goods. He says downward pressure on second-half 2002 EPS estimates and 2003 estimates may not fully account for quality of earnings issues. He notes that even good news contains ominous forebodings, such as May industrial production rising for the fifth straight month, but business equipment production falling 10.2% vs. a year ago.

Against this backdrop, thinks GE, ASD, Cooper Industries (CBE ), Emerson Electric (EMR ), and Watsco (WSO ) offer the best value in the group.

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