Citigroup: General Electric should spin off units like NBC

Citigroup analyst Jeffrey Sprague has said in a report that the US based giant General Electric should consider spinning off their units like NBC and GE Money to unlock their core value for the company.

He added in his report that NBC would be able to perform better and explore better growth possibilities if it is functioning on its own.

He wrote: “GE stock has basically gone sideways for five years despite solid underlying execution. We believe GE’s size and complexity is working against investor interest in the stock and has contributed to further valuation erosion.”

GE currently happens to be world’s second-largest company by market capitalization behind Exxon Mobil Corp. and they have a presence in a variety of sectors. They manufacture jet engines, to provide commercial lending to NBC media.

Sprague further wrote: “The new, smaller GE would still be a $125 billion sales giant that would continue to enjoy the size and scope benefits that are integral to its global competitive advantages today.”