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General Electric Transformation To Drive 25% Upside

General Electric (NYSE:GE) is a global conglomerate serving customers in over 100 countries. In short, its products span transportation, aircraft engines, oil and gas equipment, alternative energy systems, medical imaging devices, and water treatment systems. Its finance division, GE Capital, is a "systemically important" financial institution that engages in commercial finance, energy and aviation financing, among other financial services. We believe that after years of lagging performance versus peers, GE has taken the right steps to close the valuation discount. Key drivers of change include reducing GE Capital's contribution towards earnings towards the 25% target, successfully integrating the Alstom acquisition, continued divestiture of non-core assets (i.e. the lighting division), and cutting overhead costs. After valuing the business on SOTP basis, we believe that shares have 25% upside from its current price of…