Multinational conglomerate General Electric Company (NYSE: GE) has revealed that its CEO, Larry Culp, will now lead the aviation business of the company too.
Shares of General Electric slipped marginally to close at $66.71 on Monday.
Culp joined the Board of Directors of the company in April 2018 and was elevated to the position of CEO in October 2018. He became the first person from outside the company to become the CEO.
Meanwhile, the current CEO of GE Aviation, John Slattery, will now assume the role of Chief Commercial Officer of the business.
Further, the company also announced that ex-CFO of Otis Worldwide Corp., Rahul Ghai, will take over as GE Aviation’s new CFO. Shane Wright, the current CFO of the company, will hang up his boots. Also, the President and CEO of GE Aviation Services, Russell Stokes, will become the the CEO of Commercial Engines and Services.
GE’s Best Bet
In November 2021, the company announced plans to spin off its healthcare and power businesses by 2023 and 2024, respectively.
Further, the company had also bet on the revival of travelling post the pandemic restrictions.
CEO Culp had then said, “We power two-thirds of commercial flights, illustrating how impactful this business is today and to the future of flight.”
Recently, Goldman Sachs analyst Joe Ritchie reiterated a Buy rating on the stock with a price target of $82, which implies upside potential of 22.9% from current levels.
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on nine Buys and four Holds. GE’s average price target of $96.92 implies that the stock has upside potential of 45.3% from current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on GE, as 13.1% of top portfolios tracked by TipRanks increased their exposure to GE stock over the past 30 days.
The company’s move to give the reins of its aviation business in the hands of Larry Culp can be deemed as strategic. With Culp at the helm, the company is expected to sail smoothly in the current environment as he knows the company inside out. Further, the move will also ensure that the company’s aviation business remains largely unimpacted while undergoing a leadership change.
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