The stock of GE Vernova (GEV) rose 14% on its first day of trading and closed at $131.25 U.S. per share.
GE Vernova is the power generation business of General Electric (GE) that has been spun-off from the Boston-based industrial conglomerate.
GE Vernova’s market capitalization stands at about $36 billion U.S. and its stock is currently trading at about 10 times the company’s projected 2025 earnings.
GE Vernova has several different units, including a money-losing wind business and a more stable gas-powered turbine business.
General Electric is in the process of spinning off several of its businesses. In 2023, it spun-off GE HealthCare Technologies, which makes medical imaging products.
As of April 2, General Electric, the parent company, will be renamed GE Aerospace and will be a maker of airplane engines.
Wall Street analysts are upgrading the stock of General Electric following the spin-off of GE Vernova. Wells Fargo raised its GE stock price target to $200 U.S. a share from $177 U.S. and reiterated a “buy” equivalent rating.
The stock of General Electric has gained 93% over the past 12 months and currently trades at $180.12 U.S. per share.
