As part of its efforts to focus on aviation, power and renewable energy, the company revealed its plans to offload its healthcare, software, finance and insurance divisions along with its stake in Baker Hughes. GE also decided to divest parts of its industrial and power units in order to streamline its operations.
Analysts believe that under a new leadership, GE has a lot of options to explore in terms of restructuring and for ways to improve profits
Last week, in a surprise turn of events, GE replaced John Flannery with Larry Culp as CEO and the stock rallied 16% on the news. Analysts believe that the new chief has the potential to turn things around significantly. After a reduction in guidance for earnings and free cash flow along with a widely-anticipated dividend cut, it appears things can only get better now.
Analysts believe that under a new leadership, GE has a lot of options to explore in terms of restructuring and for ways to improve profits. On Friday, the stock saw a rally after details of the new CEO’s pay package were disclosed. Culp stands to make $300 million if he is able to push GE’s stock price to 150% over the next four years.
As of 1:50 pm ET, GE’s shares were up over 2%.