General Electric Company (NYSE:GE) announced that it has completed the previously announced sale of its European fleet services business, representing aggregate ending net investment (ENI) of approximately $2.8 billion, to Arval, a fully owned subsidiary of BNP Paribas.
“We are pleased to complete the sale of our European fleet services business to Arval,” said Keith Sherin, GE Capital chairman and CEO. “It is another important step as we continue to execute on our plan to sell most of the assets of GE Capital.”
As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets. GE and its Board of Directors have determined that current market conditions are favorable to pursue disposition of these assets. GE will retain the financing “verticals” that relate to GE’s industrial businesses.
The European fleet services transaction releases approximately $0.6 billion of capital. GE Capital believes it is on track to deliver about $35 billion of dividends to GE under this plan, as previously announced (subject to regulatory approval).
Sherin concluded, “We thank the European fleet services team for their contributions to GE Capital and to our customers, and wish them a successful future as they join Arval.” (Original Source)
Shares of General Electric closed yesterday at $29.59. GE has a 1-year high of $29.83 and a 1-year low of $19.37. The stock’s 50-day moving average is $27.24 and its 200-day moving average is $26.41.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on October 19, RBC analyst Deane Dray maintained a Buy rating on GE, with a price target of $32, which implies an upside of 8.1% from current levels. Separately, on the same day, Stifel Nicolaus’ Robert McCarthy reiterated a Buy rating on the stock and has a price target of $30.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Deane Dray and Robert McCarthy have a total average return of 4.0% and 1.4% respectively. Dray has a success rate of 58.3% and is ranked #1593 out of 3824 analysts, while McCarthy has a success rate of 55.6% and is ranked #2111.
The street is mostly Bullish on GE stock. Out of 9 analysts who cover the stock, 7 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $31.25, which represents a potential upside of 5.6% from where the stock is currently trading.