Stock Update (NYSE:GE): General Electric Company Capital Aviation Services Announces Russia’s S7 Airlines Will be First Operator of E170 in the Country


General Electric Company (NYSE: GE) Capital Aviation Services announced that just weeks after receiving the Type Certificates from the Russian authorities for the E170 and E175 jets, S7 Airlines will be the first operator of the E170 in the country. The airline signed an agreement with GE Capital Aviation Services (GECAS) to lease 17 E170 pre-owned jets, therefore not impacting Embraer’s order backlog. The airline will start to receive the aircraft in the first quarter of 2017.

“Once again, GECAS joins Embraer to provide aircraft to the Russian market,” said Arjan Meijer, Vice President, Europe & Middle East, Embraer Commercial Aviation. “We welcome S7 Airlines to the growing E-Jets operators’ family. We are delighted to see the E170 in operation with one of the largest Russian Airlines, supporting the airline as it spreads its wings around Russia. S7 is now the carrier with the largest network outside Moscow serving regional and intra-regional markets.”

“New E170s will allow us to gain momentum in the development of regional air transportation. We see this segment as having high potential. Today, air transportation is concentrated in Moscow, and passengers from Ural cities often have to fly to the Far East through a connecting flight in Moscow. The first Embraers will be based at the Novosibirsk Tolmachevo airport which is located well enough to serve as an efficient hub for other regions. The new type of airliners will allow us to launch flights from small and hard to reach cities, where the use of medium-haul aircrafts is impossible,” said Vladimir Obyedkov, CEO of S7 Airlines.

“The introduction of the E170 into the S7 fleet is the result of thorough analysis of the airline’s growing needs,” said Alec Burger, GECAS President & CEO, “The E170 offers strong economics and is well-suited to help S7 serve the Russian markets.”

The E-Jets are already well established in several countries in the region– Poland, Finland, and Bulgaria – and in CIS (Commonwealth of Independent States) countries where Embraer customers operate E-Jets in Kazakhstan, Azerbaijan, Belarus, Ukraine and the Republic of Moldova. The E190 and the E195 were certified by Russia in 2012, and Saratov Airlines has been flying the E195 since 2013.

Embraer is the world’s leading manufacturer of commercial jets with up to 130+ seats. The Company has over 100 customers all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged more than 1,700 orders and over 1,300 deliveries, redefining the traditional concept of regional aircraft by operating across a range of business applications. (Original Source)

Shares of General Electric are currently falling 0.25% to $32.05, or down $0.08 in pre-market trading Thursday. GE has a 1-year high of $33 and a 1-year low of $27.10. The stock’s 50-day moving average is $30.87 and its 200-day moving average is $30.64.

On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on December 19, Oppenheimer analyst Christopher Glynn reiterated a Hold rating on GE. Separately, on December 16, Bernstein Research’s Steven Winoker upgraded the stock to Buy and has a price target of $40.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Glynn and Steven Winoker have a yearly average return of 15.5% and 7.8% respectively. Glynn has a success rate of 76% and is ranked #1 out of 4289 analysts, while Winoker has a success rate of 73% and is ranked #805.

Sentiment on the street is mostly bullish on GE stock. Out of 10 analysts who cover the stock, 7 suggest a Buy rating , 2 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $36.00, which represents a potential upside of 12% from where the stock is currently trading.