Goldman Keeps Recommended List on GE
Goldman Sachs reiterates its recommeneded list ratings for General Electric (GE ) and American Standard (ASD ).
Analyst Martin Sankey says he issued an Electrical Equipment Quarterly report, which highlights the theme that recently issued indicators have demonstrated Sankey's long-standing view of continuing weak demand for industrial capital goods as well as downward pressure on second half 2002 earnings per share and 2003 EPS estimates that may not be fully accounting for quality-of-earnings issues.
Sankey notes that even the good news contains ominous forebodings, such as May industry production rising for the fifth straight month, but business equipment production falling 10.2% vs. a year ago. Against this backdrop, he thinks GE, American Standard, Cooper Industries (CBE ), Emerson Electric (EMR ) and Watsco (WSO ) offer the best value in the group.