GE Remains on Strong Footing in Turnaround Efforts, Despite Aerospace Supply Chain Headwinds

We believe Larry Culp is engineering a successful turnaround of GE, yet investors assign no value to GE Vernova. While most of the easy share gains following the spinoff of GE HealthCare are gone, we think there's still a fair amount of upside in GE's turnaround story, particularly with the passage of the Inflation Reduction Act. We also believe shares have unfairly priced in some deal limbo prior to the planned Vernova spinoff in early 2024.