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GE will be more active on the divestiture front this year, with plans to sell off $4B worth of its sprawling conglomerate and possibly shedding operations that aren't meeting a minimum profit margin target of 10%, CEO Jeff Immelt said in today's earnings call.
- Profits at GE's industrial business rose 12% Y/Y, with its jet engine and oil and gas businesses delivering strong results, but profit at its energy management business plunged 67% and could see some of its weaker operations sold off, even as it brings in Mark Begor - whom Immelt called a "turnaround guy" for his work running GE Capital's real estate business - to run the operation.
- S&P Capital IQ reiterated its Buy rating on the stock and raises its target price by $2 to $32, believing that GE's industrial, infrastructure and financial performance will benefit from an expanding U.S. and global economy.