General Electric Company (NYSE:GE) announced Current, powered by GE, a first-of-its kind energy company that integrates GE’s LED, Solar, Energy Storage and Electric Vehicle businesses with its industrial strength Predix platform to identify and deliver the most cost effective, efficient energy solutions required by customers today and in the future. Maryrose Sylvester, who as President and CEO at GE Lighting has led the transformation of one of the company’s most iconic businesses, will lead the new enterprise. Current is backed by GE’s balance sheet and financing expertise, and committed to successfully advancing ecomagination-certified technology solutions, new business models and Predix solutions for the energy sector.
“Current combines GE’s products and services in energy efficiency, solar, storage, and onsite power with our digital and analytical capabilities to provide customers – hospitals, universities, retail stores, and cities – with more profitable energy solutions,” said Jeff Immelt, Chairman and CEO of GE. “The creation of a new company within GE reinforces our commitment to take energy to the next level, focusing on custom outcomes for our Commercial & Industrial customers, municipalities and utility partners, and delivering a platform that can be upgraded as technology advancements are made.”
Current will begin with more than $1 billion of revenue and build on GE’s legacy in energy and deep roots in technology. It will bring to market a holistic energy-as-a-service offering absent from industry today that includes sensor-enabled hardware, software, fulfillment, product management and financing solutions. Through Predix, GE will analyze energy consumption and provide customers with data around patterns and needs along with recommendations to increase efficiency – from reducing power levels, to generating power on site to creating new revenue streams for customers through the use of sensors and networked systems in buildings. These advanced solutions will help customers save an estimated 10-20% on their energy bills, and help utility partners better manage their distributed load.
“We’ve been transforming the power and lighting sector since GE’s inception. Energy is part of our legacy, part of our genetic code. And digital code is a big part of our future. Once again, we have an opportunity with Current as a startup to lead another significant change in energy delivery,” said GE Vice Chair Beth Comstock, whose oversight of Business Innovation encompasses Current and other transformation efforts. “Commercial enterprises can’t afford complexity and inefficiency in energy solutions if they are to remain competitive. They are looking for ‘future proofed’ solutions. From the socket to the grid, we understand how the electrons flow and have the unique position to optimize energy regardless of the scenario or customer.”
Several key customers, including Walgreens, Simon Property Group, Hilton Worldwide, JPMorgan Chase, Hospital Corporation of America (HCA), Intel and Trane, a brand of Ingersoll Rand, are piloting Current’s solutions to transform their operations, drive energy efficiency and reduce costs.
“Walgreens has a history of implementing environmentally sustainable technologies in our retail footprint,” said Matt Harris, Divisional Vice President of Facilities Asset Management for Walgreens. “For more than 25 years, we have worked with GE to bring improved lighting technologies to stores and most recently installed GE’s environmentally-sustainable LED lighting products in some of our stores. It is important that we continue to find innovative, sustainable technology and explore ways to leverage software platforms like GE’s Predix to assess our energy needs and increase efficiency. That is not only smart for our communities and planet but also makes good business sense.”
“As part of Simon’s continued effort to improve energy efficiency at its properties, the company is exploring several new energy saving opportunities, in addition to our use of LEDs, including innovative new battery storage concepts,” said Tim Earnest, Executive Vice President for Simon Management Group. Pairing these technologies with GE’s Predix data systems and software could lead to powerful, cost effective, efficient energy solutions. With more than 200 malls, The Mills and Premium Outlets in North America, Simon’s scale lends itself well to testing energy efficiency programs for potential use across its portfolio.”
Current will be headquartered in the greater Boston, Mass. metropolitan area, with additional presence in the Silicon Valley. It is expected to create roughly 200 new jobs focused on software, outcomes selling and energy product management over the next few years. Operations have begun and will continue to increase in 2016. (Original Source)
Shares of General Electric opened today at $27.5 and are currently trading up at $27.67. GE has a 1-year high of $28.68 and a 1-year low of $19.37. The stock’s 50-day moving average is $24.84 and its 200-day moving average is $25.93.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on October 5, Barclays analyst Scott Davis maintained a Buy rating on GE, with a price target of $30, which implies an upside of 9.1% from current levels. Separately, on the same day, Deutsche Bank’s John G. Inch maintained a Hold rating on the stock and has a price target of $28.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Scott Davis and John G. Inch have a total average return of -2.4% and 11.5% respectively. Davis has a success rate of 50.0% and is ranked #3179 out of 3769 analysts, while Inch has a success rate of 72.4% and is ranked #660.
The street is mostly Bullish on GE stock. Out of 4 analysts who cover the stock, 3 suggest a Buy rating and one recommends to Hold the stock. The 12-month average price target assigned to the stock is $30.33, which implies an upside of 10.3% from current levels.