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General Electric Company (GE) to Provide Europe’s Largest Power Utility with Predix-Based Asset Performance Management Software


General Electric Company (NYSE:GE) announced that it will provide the Global Thermal Generation division of Enel, Europe’s largest power utility in terms of market capitalization, with its Predix*-based software solutions to be deployed as predictive diagnostic tool in 14 of Enel’s thermal power plants located in Europe and Latin America, supporting their digitalization.

GE and Enel will deploy and optimize GE’s Asset Performance Management (APM) software at 13 gas-fired and 1 coal-fired Enel’s power plants with an overall installed capacity of 7 GW to monitor, predict and enhance the facilities’ reliability. All the power plants use GE or Alstom technologies. Implementation of the software is expected to begin in January 2018 and to be completed approximately by the end of the year.

“The digital transformation of electricity has the potential to generate more than €1.1 billion in value for the global power and utility industry in the next decade,” said Russell Stokes, CEO, GE Power. “Enel is demonstrating that it intends to lead this digital transformation, and I’m excited by the prospect of bringing our teams together to write a new chapter for Enel and for the industry.”

GE has previously supplied Enel with advanced technologies and services agreements on assets such as gas turbines and associated generators.

Shares of General Electric closed yesterday at $18.56, up $0.28 or 1.53%. GE has a 1-year high of $31.52 and a 1-year low of $17.25. The stock’s 50-day moving average is $17.89 and its 200-day moving average is $22.56.

On the ratings front, GE stock has been the subject of a number of recent research reports. In a report issued on January 8, J.P. Morgan analyst Stephen Tusa maintained a Sell rating on GE, with a price target of $16, which represents a potential downside of 14% from where the stock is currently trading. On January 4, Tigress Financial’s Ivan Feinseth reiterated a Hold rating on the stock, without offering a price target.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Stephen Tusa and Ivan Feinseth have a yearly average return of 8.2% and 18% respectively. Tusa has a success rate of 73% and is ranked #841 out of 4739 analysts, while Feinseth has a success rate of 73% and is ranked #119.

Overall, 4 research analysts have rated the stock with a Sell rating, 8 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 $21.42 which is 15.4% above where the stock closed yesterday.