What happened
Shares of General Electric (GE 0.91%) had moved more than 3% higher as of 1:37 p.m. ET today, as analysts and experts continue to get more bullish on the stock ahead of the anticipated spinoff of its healthcare unit.
So what
Stephanie Link, the chief investment strategist of the national wealth management firm Hightower, recently said on CNBC that she likes GE because its aviation business is "humming," supply chain struggles in healthcare are starting to correct, and the company's power division continues to be profitable.
Link also said she views the upcoming split of GE into three separate publicly traded companies as a catalyst. This process will begin at the very beginning of next year when GE Healthcare spins off and goes public.
GE Healthcare recently told investors it expects to generate an operating profit of $2.7 billion in 2022 and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $3.3 billion.
GE has been riding a wave of positive ratings from analysts. Earlier this month, analysts at Bank of America named GE as a top industrials stock for 2023. On Friday, Barclays analyst Julian Mitchell maintained an "overweight" rating on the stock and raised the price target from $92 to $96 per share, citing the Healthcare spin-off.
Now what
GE's stock has really struggled over the last five years and the company has been plagued by high levels of debt.
But the company has been cutting operating costs this year and investors really seem to like the company's plan to spin off into three different companies. This should allow for greater capital efficiency and focus on each unit's specific sector, so the future at long last looks bright.
