General Electric Company (NYSE: GE) announce another step forward in the development of its future global headquarters in Boston today. Along with MassDevelopment, GE purchased nearly 2.5 acres and two historic brick buildings from Procter & Gamble (P&G). The property sits on the edge of P&G’s Gillette World Shaving Headquarters Campus in the Fort Point neighborhood of Boston.
In simultaneous closings, GE purchased the land to construct its headquarters and MassDevelopment, the Commonwealth’s quasi-public finance and development agency, bought two existing brick buildings and open space. GE will undertake the rehabilitation of the buildings and lease them back from MassDevelopment.
“This is another important milestone in making our new HQ innovation campus a reality,” said Ann R. Klee, vice president Boston Development and Operations for GE. “We continue to move through the process for the necessary reviews and approvals for the HQ project. We’re happy to have been able to complete this with Gillette, allowing us to immediately start rehabilitation of the brick buildings and begin preparing for construction of the new building,” she said.
The new campus will include the rehabilitation of the two historic brick buildings and the construction of a new 12-story building. The campus will include many public features including a café, restaurant, maker space, GE Brilliant Career Lab and a GE experience center. New and improved public outdoor space, including an expanded Harborwalk, will invigorate access to the area.
“Boston’s relationship with GE continues to grow stronger, and I am excited that they have finalized the purchase of their new headquarters property,” said Mayor Martin J. Walsh. “I look forward to GE rehabilitating some of our historic Seaport sites, and breaking ground on their new construction.”
“We appreciate the collaboration of GE and the City of Boston as this closing brings the Commonwealth one step closer to being home to GE’s new global headquarters,” said Governor Charlie Baker. “We have already seen tremendous impact from GE’s temporary headquarters in entrepreneurship, STEM education, health care innovation, and research and development and look forward to our future work together.”
Both GE and Gillette share long histories of manufacturing and innovation, and a shared vision for continued community and business engagement in the Fort Point area. “We want to be the first to officially welcome GE as they assume ownership of their new home on Necco Court” said Charlie Pierce, president, The Gillette Company at P&G. “South Boston has been our home for well over a century. We are proud to welcome a world class innovator and manufacturer as our new neighbor – and we wish GE a future filled with rich innovation and business success in this amazing city.” (Original Source)
Shares of General Electric are currently rising 0.13% to $31.96, or up $0.04 in after-market trading Monday. GE has a 1-year high of $33 and a 1-year low of $27.10. The stock’s 50-day moving average is $30.65 and its 200-day moving average is $30.60.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on December 16, Bernstein Research analyst Steven Winoker upgraded GE to Buy, with a price target of $40, which represents a potential upside of 26% from where the stock is currently trading. Separately, on December 15, RBC’s Deane Dray reiterated a Buy rating on the stock and has a price target of $37.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Steven Winoker and Deane Dray have a yearly average return of 7.7% and 3.3% respectively. Winoker has a success rate of 70% and is ranked #831 out of 4283 analysts, while Dray has a success rate of 70% and is ranked #1298.
Overall, one research analyst has rated the stock with a Sell rating, 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 $36.00 which is 13.4% above where the stock opened today.