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General Electric Gears Up For Vernova Spin-Off Amid GEHC Stock Surge

While General Electric displays strength in both the military and the commercial space, an impending GE Vernova spin-off is key.

BOSTON, N.Y. — While General Electric Co displays strength in both the military and the commercial space, an impending GE Vernova spin-off is key to investor optimism. Another wild card is the GEHC stock.

Last month, the company announced that it plans to spin off GE Vernova and launch GE Aerospace in the beginning of the second quarter of 2024. GE Vernova will be listed on the New York Stock Exchange under the ticker symbol “GEV” after the planned spin-off.

GE Vernova, has signed a memorandum of understanding with Next Hydrogen Solutions Inc. for green hydrogen production.

Expect GE Aerospace to continue under the existing GE stock listing. Accordingly, GE eventually would be “creating three independent, investment-grade industry leaders”, per GE Chairman and CEO H. Lawrence Culp, Jr. by second-quarter (Q2) of 2024.

General Electric Catalysts

General Electric is in a good position to benefit from industry trends and valuations through the spin-off. The company’s emphasis on aerospace is likely to contribute significantly to long-term growth. With its trajectory of EPS and revenue beat continuing for the third quarter in a row, GE looks poised for growth and more earnings surprises.

In addition, the company owns the Renewables and Power division of GE Vernova, which, despite present challenges, has the potential to grow into a profitable enterprise. Investors in GE Vernova will have the option to retain their shares following the division’s separation from General Electric.

GE HealthCare Technologies Inc  has growing margins and potential for continued strong organic growth. The company recently won the FDA nod for its remote scanning solution.

The multinational medical technology company was spun-off from General Electric on January 4, 2023, with GE retaining 13.5%. On a year-to-date basis, the stock is up 31.62%. GEHC stock is up over 10% since it beat EPS and revenue estimates on Oct. 31.

“It’s been nearly two years since we announced our plan to create three independent, investment-grade, industry leaders. We’re now closing in on our final step—spinning off GE Vernova and launching GE Aerospace, following the successful spin-off of GE HealthCare earlier this year. Our teams are building momentum, and we’re excited to be with so many of our valued customers and industry peers on the New York Stock Exchange in the beginning of the second quarter of 2024,” said GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. 

“The New York Stock Exchange is delighted to continue our long-standing relationship with GE spanning over three centuries. We’re thrilled to have GE Aerospace and GE Vernova in our community of listed companies, providing both with industry-leading visibility and market quality as they embark on this exciting journey as stand-alone entities,” said NYSE President Lynn Martin.

© 2023 Benzinga does not provide investment advice. All rights reserved.

Produced in association with Benzinga

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