Michigan-based DTE Energy Co (NYSE:DTE) has awarded outage services work to General Electric Company (NYSE:GE) Power & Water through GE Hitachi Nuclear Energy (GEH) and GE Power Generation Services (PGS) for the utility’s Fermi 2 Nuclear Power Plant.
GEH will provide a host of outage and inspection services related to the boiling water nuclear reactor at the Fermi 2 plant in Newport, Michigan, while PGS will provide inspection and maintenance services to the main generator and six turbine valves. The services will be provided during an outage this fall.
“These awards are outstanding examples of the comprehensive, end-to-end solutions that GE Power & Water provides to nuclear power customers,” said Lance Hall, senior vice president, Nuclear Services and Fuels, GEH. “We’re pleased to strengthen our alliance with DTE Energy and look forward to bringing project management excellence, technical rigor, industry-leading performance and innovative technology solutions to the fall outage at Fermi 2.”
Fermi 2 is a 1,170-megawatt (MW) boiling water reactor that has been operating since 1988. The reactor has the capacity to provide clean, carbon-free electricity to more than 1 million homes. Global Nuclear Fuel, a GE-led joint venture, has provided fuel to the plant since the initial core load.
In addition to providing critical maintenance services to its existing unit, GEH also has partnered with DTE Energy in the new plant’s space. In April, the utility received approval from the Nuclear Regulatory Commission (NRC) for a license to construct and operate a GEH Economic Simplified Boiling Water Reactor (ESBWR) on the Fermi 2 plant site. Issuance of the license concluded a six-year process that examined the technical, safety and environmental aspects of the potential 1,500-MW unit. The license marked the first for an ESBWR and came on the heels of the reactor’s NRC certification in 2014. (Original Source)
Shares of General Electric closed yesterday at $26.77. GE has a 1-year high of $28.68 and a 1-year low of $23.41. The stock’s 50-day moving average is $26.93 and its 200-day moving average is $25.75.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on June 26, William Blair analyst Nicholas Heymann reiterated a Hold rating on GE, with a price target of $30, which represents a potential upside of 12.1% from where the stock is currently trading. Separately, on June 18, Deutsche Bank’s John G. Inch maintained a Hold rating on the stock and has a price target of $29.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nicholas Heymann and John G. Inch have a total average return of -4.0% and 12.8% respectively. Heymann has a success rate of 25.0% and is ranked #2991 out of 3707 analysts, while Inch has a success rate of 83.3% and is ranked #808.
Overall, 3 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $33.00 which is 23.3% above where the stock closed yesterday.