Zacks Equity Research said that GE Capital’s loan defaults are likely to be a drag on GE’s profitability. In addition, muted 2014 outlook and a huge backlog of equipment and services increase operating risks amid a challenging macroeconomic environment.

Zack’s said that with a diligent execution of its strategic plans, focus on core businesses and stringent cost-cutting measures, GE is likely to improve in the coming quarters. Zacks said it maintains its neutral recommendation for the stock.

To read the full Zack’s report click here.