Investors’ discomfort with General Electric’s exposure to the troubled financial services industry deepened on Monday after an analyst warned that the conglomerate might need to inject more equity in its GE Capital division. GE shares have dropped for three straight days to their lowest since 1995. Nigel Coe, an analyst at Deutsche Bank, cut his target price for GE to $12 from $17 and cast doubt on its $5bn forecast for GE Capital’s 2009 earnings, warning the shortfall might leave the finance unit in violation of a fixed charge covenant on its debt.

This entry was posted by Gwen Robinson on Tuesday, February 24th, 2009 at 5:18 and is filed under Capital markets. Tagged with ge capital. Edit this entry.