General Electric Company Power’s Distributed Power business (NYSE:GE) announced it has signed an agreement with Simba Corporation Limited (Simba Corp.) as a new authorized distributor and services provider for GE’s diesel engines. Simba Corp. is a leading industrial company in East Africa with diverse interests in the energy, automotive, fleet management, financial services, hospitality and real estate sectors. The agreement will focus on a number of key industrial sectors that require more reliable on-site power including manufacturing, mining, oil and gas production, industrial facilities, and large-scale real estate developments.
GE is rapidly expanding its natural gas and diesel engine technology offerings for global customers seeking more reliable energy at or near the point of use. In 2014, the company introduced its new 2.6-megawatt (MW) 616 diesel engine, joining with the proven 228 and 250 diesel engine product lines to create a diverse diesel engine portfolio for stationary power generation. These diesel product lines complement the company’s natural gas and specialty gas engines.
“Simba Corporation’s power division has been a player in the power sector for over 15 years. We are therefore excited to sign this agreement to become an authorized distributor for GE’s 616, 228 and 250 diesel engine product lines and expand our product offerings,” said Simba Corporation CEO Adil Popat. “Energy is the key driver to achieving Vision 2030, Kenya’s national blueprint that aims at having the country reach a newly industrialized status and achieve a higher quality of life by 2030.”
GE’s distributed power technologies are ideally suited to help countries in East Africa strengthen their energy security by enhancing the use of their domestic energy resources to reduce local power supply shortages. With a GDP growth averaging 5 percent, Kenya is faced with increased energy consumption and aims to increase generation capacity to a total of 5,000 MW by 2016 and 23,000 MW by 2030. GE’s diesel engines will be a suitable option for customers due to their high efficiency, improved fuel consumption and ease of installation. The diesel technology also has a stable power output and reliable efficiency in the most demanding ambient conditions and its installation is fast and simple.
“With our agreement with Simba Corporation, we are taking another important step forward in our strategy to expand the deployment of our Distributed Power technologies in Kenya and throughout Africa to boost the production of cleaner, more reliable energy and support the region’s goals to create more sustainable local economic growth,” said George Njenga, sub-Saharan Africa leader for GE’s Distributed Power business. “The life cycle service support our diesel and natural gas engines receive is a crucial element of our commitment to our customers to achieve their business goals.”
Simba Corp. offers greater access to key industrial sectors in the country and has the financial resources to provide customers with needed energy solutions.
GE’s diesel engine distributorship agreement with Simba Corp. is the second diesel pact that GE has signed in Africa in 2015. In April 2015, GE announced it had signed an agreement with U.K.-based Clarke Energy to serve as GE’s first authorized distributor for diesel engine sales and services with responsibility for stationary power generation in Nigeria as well as Australia and India.
Since 2011, GE Africa’s sub-Saharan headquarters has been located in Nairobi. The headquarters is now home to more than 200 employees. GE is committed to supporting Kenya in realizing its Vision 2030 goals. (Original Source)
Shares of General Electric closed yesterday at $30.59, down $0.07 or -0.23%. GE has a 1-year high of $30.99 and a 1-year low of $19.37. The stock’s 50-day moving average is $29.24 and its 200-day moving average is $26.78.
On the ratings front, GE has been the subject of a number of recent research reports. In a report released yesterday, Credit Suisse analyst Julian Mitchell maintained a Buy rating on GE, with a price target of $34, which represents a potential upside of 11.1% from where the stock is currently trading. Separately, on November 16, 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, Julian Mitchell and John G. Inch have a total average return of 11.1% and 12.4% respectively. Mitchell has a success rate of 73.2% and is ranked #351 out of 3636 analysts, while Inch has a success rate of 76.7% and is ranked #516.
Overall, 2 research analysts have assigned a Hold rating and 7 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 $32.00 which is 4.6% above where the stock closed yesterday.