Iberdrola Generation Mexico, a business group dedicated to power production, distribution and commercialization, has ordered two General Electric Company (NYSE:GE) 6F.01 gas turbines and long-term services for two cogeneration projects in Mexico. The two plants are located in Altamira, in the state of Tamaulipas, and in San Juan Del Rio, in the state of Querétaro. The projects will have a combined generation capacity of approximately 100 megawatts (MW), the equivalent power needed to supply approximately 500,000 Mexican homes.
Cogeneration, or combined heat and power, is the simultaneous production of electricity and heat. The steam created during electricity generation is used to produce heat.
“GE is a strategic partner for Iberdrola. After a market evaluation process, it was determined that GE’s 6F.01 technology was the most competitive for this type of cogeneration application,” said Enrique Alba, general director of Iberdrola Generation México. “The two projects should have very favorable operating conditions for GE’s technology.”
The projects will help drive energy development and improve energy production costs for end users in both states.
“With energy reform in Mexico, now is the right time to move forward with these projects,” said Marco Vera, executive sales manager for Mexico, Central America and the Caribbean, gas power systems, GE Power. “These plants will help the country produce the efficient and reliable energy it needs at home and to better compete in the global marketplace.”
GE and Iberdrola are long-term partners and have collaborated on various projects around the world.
GE’s 6F.01 gas turbine is one of the most efficient gas turbine technologies available for this range of power. The first 6F.01 gas turbine – originally called a 6C – began commercial operation in 2005 and has more than 110,000 hours of operation with reliability of 99.2% over the last four years.
Commercial operation for both plants is expected in 2017. (Original Source)
Shares of General Electric are trading at $30.13 down $0.06 or -0.20%. 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 $29.93 and its 200-day moving average is $27.03.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on November 30, RBC analyst Deane Dray reiterated a Buy rating on GE, with a price target of $34, which represents a potential upside of 12.6% from where the stock is currently trading. Separately, on November 23, Credit Suisse’s Julian Mitchell maintained a Buy rating on the stock and has a price target of $34.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Deane Dray and Julian Mitchell have a total average return of 3.2% and 10.6% respectively. Dray has a success rate of 57.7% and is ranked #1407 out of 3640 analysts, while Mitchell has a success rate of 71.9% and is ranked #374.
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 $32.00, which represents a potential upside of 6.0% from where the stock is currently trading.