General Electric Company (NYSE:GE) was selected by Alco Bio Fuel, one of Belgium’s major biorefineries, to deploy its Predix*-based Asset Performance Management (APM) solution to future-proof the refinery’s power-generation unit’s refinery field operations. The service contract will last for 10 years, and GE will also be responsible for providing on-site service support.
When an electric rotating machine (ERM), such as the generator in the power-generation unit, fails, the consequence can be significant. Digital transformation is a necessary and inevitable step to improve operational efficiency and reduce risks of power outages.
Traditionally, vibration sensors are used to detect failures in rotating machines, but their ability is limited to detecting mechanical failures only, neglecting common electrical failures. Industry advancements in big data analytics and new software applications such as GE’s Predix-based APM solution, combined with new sensing techniques, have enabled new ways to more effectively monitor and fine-tune the performance of an ERM.
GE’s APM solution, powered by Predix, the application development platform for the Industrial Internet, connects, monitors and provides predictive analytics to the generator inside the plant. When deployed, it will collect data from electric sensors built into the generator asset.
The APM application analyzes streams of data with key intelligence about the health and performance of the generator asset while searching for signs of mechanical or electrical anomalies, which may lead to potential failure or inefficiency. These insights can, in turn, help operators to fine-tune parameters of the generator to improve its performance. More importantly, it will allow operators to solve potential problems before they occur, reducing costly unplanned downtime, mitigating risk and improving productivity. The data-driven operation method will also enable predictive maintenance, which means fixing machines before failures arise, without wasting time servicing them on a fixed schedule, and it will reduce excessive maintenance costs.
GE’s Power CEO Azeez Mohammed commented, “The need for production efficiency has opened up new opportunities to use digital technologies to accelerate field automation and improve plant productivity. Enabling this shift to data-based intelligence to reap additional value should be the focused strategy for companies to sustain their competitiveness. We are pleased to work with Alco Bio Fuel to digitally transform their way of operations.”
Shares of General Electric are currently trading at $17.95, up $0.13 or 0.73%. GE has a 1-year high of $32.38 and a 1-year low of $17.46. The stock’s 50-day moving average is $18.65 and its 200-day moving average is $23.75.
On the ratings front, GE stock has been the subject of a number of recent research reports. In a report issued on December 13, Deutsche Bank analyst John G. Inch maintained a Sell rating on GE, with a price target of $15, which represents a potential downside of 16% from where the stock is currently trading. Separately, on December 10, Stifel Nicolaus’ Robert McCarthy reiterated a Hold rating on the stock and has a price target of $18.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John G. Inch and Robert McCarthy have a yearly average return of 13.3% and 14.6% respectively. Inch has a success rate of 76% and is ranked #731 out of 4719 analysts, while McCarthy has a success rate of 78% and is ranked #280.
Overall, 4 research analysts have rated the stock with a Sell rating, 7 research analysts have assigned a Hold rating and 3 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 $21.5 which is 20.7% above where the stock closed on Friday.