Shares of General Electric Co. GE, -0.73% fell 0.8% in midday trading Monday, paring earlier intraday loss of as much as 2.4%, after Deutsche Bank analyst Nicole DeBlase effectively cut her price target in the wake of the reverse stock split. DeBlase said target for GE’s stock was $103, which is down from what her pre-split target of $14 implies post-split, of $112. She reiterated her hold rating on GE, as her new price target was about 0.7% below current prices. Meanwhile, DeBlase revised her 2021 estimate for earnings per share to $2.20, which compares with GE’s split adjusted EPS guidance of $1.20 to $2.00 (pre-split EPS guidance of 15 cents to 25 cents). GE’s one-for-eight reverse stock split, which the company said was implemented to reduce the number of shares outstanding to a number “more typical” of companies with comparable market capitalization, took effect on Aug. 2. GE’s stock has slipped 2.5% over the past three months, while the iShares Industrial Select Sector ETF XLI, -0.26% has lost 2.0% and the S&P 500 SPX, -0.09% has gained 4.7%.
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