ABLZF - GE Vernova: An Interesting Stalwart To Ride The Energy Transition
2024-04-02 09:00:11 ET
Summary
- GE Vernova is spinning off from General Electric to focus on renewable energy, leveraging significant operational improvements to capitalize on the electrification and decarbonization mega-trends.
- Despite challenges in the wind division's profitability, GE Vernova exhibits strong potential for growth in the energy sector, supported by a solid power business and promising prospects in electrification.
- With a robust financial foundation, including a significant backlog and a focus on manufacturing efficiency and disciplined pricing, GE Vernova is poised for sustained revenue and free cash flow growth.
As most General Electric ( GE ) investors know, the company is in the process of splitting itself into several different companies. The healthcare division, GE HealthCare ( GEHC ), already started trading separately in 2023 and is up more than 50%. In early April, it will be GE Vernova's ( GEV ) turn to start trading as a standalone company. What will remain of GE will be mostly the aerospace business, and it is believed that it will therefore change its name to GE Aerospace even if it keeps the original ticker....
GE Vernova: An Interesting Stalwart To Ride The Energy Transition