Company Update (NYSE:GE): Digital Transformation of Energy Accelerating General Electric Company’s Digital Plans for Power Industry

Showcasing General Electric Company’s (NYSE:GE) transformation into the world’s leading digital industrial company, GE Power highlighted the latest steps it is taking to deploy its portfolio of digital solutions to help utility and industrial customers boost their productivity while reducing their environmental impacts and operating costs throughout the entire energy value chain.

“We are experiencing a 21st century digital transformation that promises to drive unprecedented industrial innovation,” said Steve Bolze, president and CEO of GE Power at the 2016 CERA Week energy conference in Houston. “The world is expected to need 50 percent more power over the next 20 years, and GE is committed to offering our customers the digital solutions they need to be more competitive and achieve their efficiency, sustainability and environmental goals.”

GE’s Digital Power Plant will enable its utility and industrial customers to harness information technologies to improve the underlying infrastructure that generates electricity in a manner that will transform the way electricity is generated and managed worldwide, helping reduce the impact of power production and consumption to the climate.

Digital Power Plant and Digital Wind Farm are two of the fastest growing parts of GE’s digital portfolio. Since launching in October 2015, GE has signed 15 Digital Power Plant customers deploying advanced controls, Predix platform, Asset Performance Management and Operations Optimization applications.  The expected benefits include up to $230 million in savings for a new combined-cycle gas power plant and up to $50 million in net present value (NPV) over 10 years for an existing combined-cycle, gas-powered plant. Across the power industry today, this will equate to up to $75 billion in savings. Similarly, Digital Wind Farm is delivering up to $100 million incremental value for a new farm.

Built upon the Predix platform, GE’s software applications enable customers to get started in their digital transformation journey and define a pragmatic roadmap to adoption.

  • Asset Performance Management (APM) helps plants reduce downtime and production costs through predictive and physics-based analytics.
  • Operations Optimization (OO) helps drive better plant and fleet performance across equipment manufacturers, site configurations and thermal cycles.
  • Business Optimization (BO) can help deliver dynamically, not only the visibility, but the insights needed to identify any underlying degradation impact and resulting true plant capability.
  • Cybersecurity of operational technology infrastructure and assets.
  • Edge Computing & Advanced Controls offer controls and computing at the edge of nearby assets, increasing flexibility through applications and analytics.

In demonstrating the operational and economic viability of the Digital Power Plant to the global utility sector, GE has implemented a number of customer engagements. Early adopters of these Industrial Internet solutions include Exelon, RasGas, Bord Gais, Crestwood, PSEG, Sapphire, Engro and Saif.

“Across the utility and power-intensive industrial sectors, our customers are seeking partners and technology solutions to help them deliver better outcomes across the enterprise,” said Ganesh Bell, chief digital officer for GE Power’s Digital Solutions business. “Small changes in fuel, maintenance, uptime, productivity, flexibility, safety and labor effectiveness have incredible impacts on overall  profitability—and are vital to customers in staying competitive in today’s changing world.” (Original Source)

Shares of General Electric closed today at $28.95, down $0.27 or -0.92%. GE has a 1-year high of $31.49 and a 1-year low of $19.37. The stock’s 50-day moving average is $28.68 and its 200-day moving average is $27.96.

On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on January 26, Oppenheimer analyst Christopher Glynn reiterated a Hold rating on GE. Separately, on January 25, William Blair’s Nicholas Heymann reiterated a Buy rating on the stock and has a price target of $38.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Glynn and Nicholas Heymann have a total average return of 13.6% and 2.2% respectively. Glynn has a success rate of 71.0% and is ranked #1 out of 3664 analysts, while Heymann has a success rate of 52.9% and is ranked #1406.

Overall, 3 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 10.7% above where the stock opened today.



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