General Electric Company (NYSE:GE) has entered into an agreement with Banca IFIS S.p.A to sell its shares in GE Capital Interbanca S.p.A in Italy. The transaction includes employees of the business and represents ending net investment (ENI) of approximately US$3.7 billion as of the end of the first quarter of 2016. The transaction is subject to customary regulatory approvals and is expected to close around the end of 2016.
GE Capital Interbanca in Italy provides commercial lending, factoring, and lease financing products to smaller and mid-sized companies.
“As we continue to execute on our strategy to sell our financing businesses that aren’t linked to GE, the Italian platform is our last major European transaction,” said GE Capital Chairman and CEO Keith Sherin. “We are pleased to reach agreement with Banca IFIS, a growing bank with complementary products and customers, who will continue to serve our Italian customers as they grow,” he added.
As previously announced, GE is focusing on its high-value industrial businesses and is selling most GE Capital assets. GE will retain the financing verticals that relate directly to GE’s industrial businesses.
Since the announcement in April, 2015, GE Capital has signed agreements for the sale of approximately US$189 billion of businesses and has closed approximately US$168 billion of those transactions. GE Capital plans to have largely completed the process of selling approximately $200 billion of GE Capital businesses not linked to GE by the end of 2016. GE Capital believes it is on track to deliver about $35 billion of dividends to GE under this plan, subject to regulatory approval. (Original Source)
Shares of General Electric closed yesterday at $31.28, down $0.19 or -0.60%. GE has a 1-year high of $33 and a 1-year low of $19.37. The stock’s 50-day moving average is $31.28 and its 200-day moving average is $30.03.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on July 26, Bernstein Research analyst Steven Winoker maintained a Hold rating on GE, with a price target of $34, which represents a potential upside of 8.7% from where the stock is currently trading. Separately, on July 25, Argus’ John Eade reiterated a Buy rating on the stock and has a price target of $36.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Steven Winoker and John Eade have a total average return of 9.8% and 11.3% respectively. Winoker has a success rate of 75.7% and is ranked #593 out of 4087 analysts, while Eade has a success rate of 74.4% and is ranked #118.
The street is mostly Bullish on GE stock. Out of 14 analysts who cover the stock, 7 suggest a Buy rating , 5 suggest a Hold and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $32.71, which represents a slight upside potential from current levels.