GE Splits Into New Aerospace and Renewables Companies, Analysts Bullish on Stock
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GE is splitting its jet engine business into a new company called GE Aerospace on April 2nd. Aerospace projects $10B in operating profit, a major increase over current $6.4B.
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The other new company, GE Vernova, will contain GE's renewable energy like wind power. It is currently losing money but plans major investments and improvements.
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Vernova expects $700M-$1.1B in free cash flow this year and $1B annually in R&D spending.
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Analysts have a Strong Buy rating on GE stock, with 11 Buys and 3 Holds.
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The average analyst price target of $163.31 implies minimal 0.29% downside risk for GE stock.