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GE Vernova debuts on NYSE, as spinoff from GE's aerospace-only unit completes

By Steve Gelsi

GE Vernova's stock rises as it launches as a separate company

GE Aerospace and GE Vernova begin life Tuesday as two separate stocks as they rang the opening bell on the New York Stock Exchange.

GE Aerospace (GE) now trades under the "GE" ticker of General Electric Co. as an independent company. It said it now expects to generate $10 billion of operating profit in 2028. It'll report quarterly earnings on April 23.

GE Aerospace's stock fell 0.7% in morning trades.

Including Tuesday's action, GE's stock has risen by 8.8% so far in 2024, compared with an 8.8% gain by the S&P 500 SPX.

GE Vernova's (GEV) stock rose by 3.9% on Tuesday morning. The stock had changed hands in recent days on a "when-issued" basis.

As a specialist in energy generation with more than 80,000 employees, GE Vernova plans to generate mid-single digit organic revenue growth, and 90%-110% free cash flow conversion by 2028.

The company is scheduled to provide its first quarterly update as an independent company on May 24, according to FactSet data.

JPMorgan analyst Mark Strouse initiated coverage of GE Vernova with a neutral rating and a price target of $141 a share.

"We view GEV as a core long-term holding for investors seeking exposure to the electrification trend, with scarcity value driven by the company's diversification and relative exposure to the U.S.," Strouse said in a research note. "We believe the margin turnaround already under way, initiated by new leadership, still has runway."

Meanwhile, GE Healthcare Technologies Inc. (GEHC) was spun off from GE back in late 2022. That stock has gained 13.9% in the year to date.

Also read: GE Vernova, Solventum to join S&P 500 index next week

-Steve Gelsi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.


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04-02-24 1017ET

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