General Electric hit a multiyear high Monday as investors cheered the spinoff of its lending unit.
Citigroup raised its target price for the company.
GE said last week that it plans to spin off its North American consumer lending unit through an IPO as part of its planned exit from the business. The consumer finance business, which is part of GE Capital, provides store credit cards through retailers like Wal-Mart Stores Inc.
The Fairfield, Conn., company has been shaping itself into a conglomerate more focused on industrial equipment and appliances, shrinking its banking operations and selling off its media arm, NBCUniversal. GE's products include jet engines, medical diagnostic equipment, oil and gas drilling equipment and washing machines.
The analysts said in a research note that the offering of the retail finance arm, as well as plans to lower its share count and simplify its expenses, should lead to earnings growth for the next two years. They said that in a slow-growth environment, GE is "making its own luck" with these moves. They increased their target price for the stock from $29 to $32.
Shares of General Electric Co. rose 9 cents to $27.29 by late afternoon in trading as the rest of the Nasdaq dipped. Its shares hit $27.50 earlier in the day, its highest level since 2008. Its stock has been steadily climbing all year.
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Original headline: GE shares jump on spinoff, growth plans
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