GE’s investor relations executives denied that CEO Jeff Immelt will leave the company and be replaced by CFO Jeff Bornstein, as suggested by a Barclay’s analyst, according to TheStreet.com.
Barclay’s analyst Scott Davis gave GE an “overweight” rating and thinks that there is time for new blood for GE. Immelt has run the company since 2001, and while he saved GE from near ruin during the financial crisis, Davis wrote, according to TheStreet, “(it is time for ) new energy, new ideas and a greater understanding of portfolio management and capital deployment.”
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The stock has fallen 37% since Immelt took over compared to a 78% gain in the same time period for the S&P 500. Analysts have called for a split-up of the conglomerate and feel it is too big as a stand alone company. Immelt has resisted these suggestions, but Davis feels that Bornstein is “more open minded about portfolio simplification and a breath of fresh air from the usual GE PR machine.” according to theStreet. Davis is bullish on the stock, and thinks it could go to $30 if it splits up, but thinks it will need Borenstein to do so.
However, GE denies Immelt is stepping down with in a year, as Davis predicted. One source says the investor relations department has been making light of the report by Davis.
