Why General Electric Company Shares Are Rising Today
Portfolio Pulse from Nabaparna Bhattacharya
General Electric Company (NYSE:GE) shares rose after the company announced that GE Aerospace reaffirmed its guidance, including a $10 billion operating profit target for 2028. GE Aerospace is set to become an independent public company in 2024. GE plans to return 70-75% of available funds through dividends and share buybacks, with a 30% dividend payout and a $15 billion share buyback plan. The company forecasts low-double-digit revenue growth for FY24 and FY25, with operating profits increasing annually through FY28.

March 07, 2024 | 2:24 pm
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General Electric's shares increased following the announcement of GE Aerospace's reaffirmed guidance and financial outlook, including significant future profit targets and shareholder return plans.
The positive reaction in GE's stock price can be attributed to the reaffirmed guidance by GE Aerospace, indicating strong future profitability and growth prospects. The announcement of GE Aerospace becoming an independent company, along with significant plans for returning funds to shareholders through dividends and share buybacks, likely contributed to investor optimism. The detailed financial outlook for the coming years, including the ambitious operating profit target for 2028, provides a clear growth trajectory, further boosting investor confidence.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100