General Electric Closes $21.4 Billion Biopharma Sale to Danaher
General Electric Co. (GE) has finalized the $21.4 billion sale of its biopharma business to Danaher Corp. (DHR).
The sale to Danaher Corp gives GE net proceeds of $20 billion, after accounting for taxes, fees and factored receivable balances, GE said in a statement.
“Completing the sale of BioPharma represents a critical milestone on our multi-year transformation, fortifying our considerable sources to de-risk our balance sheet and continue to solidify our financial position,” GE Chairman and CEO H. Lawrence Culp, Jr. commented.
The shares dropped 11% to $7.04 at the close of trading in New York on Wednesday. GE stock has declined over 40% this year as the coronavirus pandemic sent stocks tumbling across the globe. Citigroup analyst Andrew Kaplowitz yesterday lowered GE’s price target to $11 from $15, while maintaining a Buy rating.
Read More: General Electric’s Aviation to Cut 10% of Workforce as Air Travel Demand Freezes
Overall Wall Street analysts are slightly cautious about recommending General Electric as 9 have a Buy rating on the stock and 6 have a Hold rating adding up to a Moderate Buy consensus rating and an average price target of $12.04 per share. Should the target be met, shares could be in for a 71% twelve-month gain. (See General Electric’s stock analysis on TipRanks)
Danaher’s shares were down 7% closing at $128.70 in yesterday’s trading, providing investors with a 29% gain should the $165.70 analysts’ average price target be met in the next 12 months. The 10 analysts covering the stock in the last three months have a Moderate Buy consensus rating on the stock based on 7 Buys and 3 Holds. (See Danaher’s stock analysis on TipRanks)Related News:
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