General Electric Company (NYSE:GE) has found the man to steer the industrial helm in the wake of Richard Laxer’s retirement: GECAS president and CEO Alec Burger, set to report to the electric car giant’s CFO Jamie Miller effective come January 2nd of the new year.
Laxer has given 33 years of his time to the industrial empire, but is ready to retire March 32, 2018. With early days beginning in GE’s financial management leadership program back in 1984, Laxer went on to usher various GE capital businesses on the domestic front, and then went on to tackle businesses in Asia as well as in Europe. Throughout Laxer’s time as both chairman and CEO of GE Capital, he expertly centered the company’s business dealings to reflect the interests of GE’s industrial businesses and customers.
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John Flannery, chairman and CEO of GE, said, “Rich has been a dedicated and respected member of GE’s leadership team with a strong track record of driving growth and delivering results. He has built strong, customer and investor focused teams. We are grateful for his service to the company.”
Rich Laxer, chairman and CEO of GE Capital, said, “I am incredibly grateful to have spent more than 33 years with this great company, and I am deeply honored to have had the opportunity to lead GE Capital. Alec and I have worked together for more than 20 years. He is a strong partner, a great leader, and the right person to take Capital forward.”
Burger joined GE in 1991 and was named a GE officer in 2007. He has built GE Capital’s businesses in both North America and Europe, holding key leadership and business development roles, and leading several major strategic real estate acquisitions. During his last two years at GECAS, the business has performed at record levels. He previously served as President and CEO of GE Capital Real Estate, where he oversaw the unit’s $38 billion portfolio. Alec led the Real Estate team through its strategic disposition, which was the first big deal in the successful transformation of GE Capital.
Jamie Miller, CFO of GE, said, “Alec has been with GE for 26 years and has a proven record of growing businesses and talent, globally. He will bring this experience to the entire GE Capital portfolio to deliver for our customers and shareholders.”
Burger will continue to also serve as the President and CEO of GECAS.
Shares of General Electric are currently trading at $17.47. GE has a 1-year high of $32.05 and a 1-year low of $17.36. The stock’s 50-day moving average is $18.40 and its 200-day moving average is $23.52.
On the ratings front, General Electric 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 14% 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 13.5% and 15.4% respectively. Inch has a success rate of 80% and is ranked #706 out of 4723 analysts, while McCarthy has a success rate of 79% and is ranked #267.
Sentiment on the street is mostly neutral on GE stock. Out of 14 analysts who cover the stock, 7 suggest a Hold rating , 4 suggest a Sell and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $21.5, which implies an upside of 23% from current levels.