"GE is making rapid progress in its transformation plan," CFRA analyst Jim Corridore wrote Monday.
However, GE is suddenly recognized for its intelligent transactions.
No fire sale
Wall Street applauded GE's decision to sell some, but not all, of its health division. This is a change from GE's previous plan to bid farewell to the profitable and cash-rich business, probably through an IPO.
"GE thinks creatively and intelligently about how to restructure," wrote Corridore.
GE said the leeway created by the sale of BioPharma will allow the company to postpone an IPO of the profitable healthcare division.
For the time being, GE will retain the remaining activities, which consist of imaging equipment such as MRI machines and diagnostic products.
The agreement puts us "on a better foundation to consider the right option" for GE Healthcare "in time," wrote Culp.
In other words, no fire sale.
"By setting aside the IPO, GE retains a relatively high cash conversion activity in the portfolio, at least for now, and allows a more opportunistic exit," Cowen analyst Gautam Khanna writes.
Dismantle GE to raise funds
The sale of BioPharma is only the latest in a series of major changes announced by Culp since joining the CEO position.
GE still worth less than $ 100 billion
Of course, the recent rebound of GE hardly comforts its shareholders, who have suffered for a long time.
Once the most valuable company in America with a value of 400 billion dollars, the market capitalization of GE is only 93 billion dollars today.
Tusa, who correctly criticized GE several years ago, warned that the company's energy and finance divisions were still facing serious problems that will take a long time to solve their problems. It has maintained its price target of USD 6 on GE, which implies a drop of over 40% from current levels.
"The math is the math," said Tusa.
GE will send more numbers to press on March 14th. It is at this time that Culp will hold a much-awaited conference call and give GE's perspective.
The 2019 numbers that GE will write in pencil will not be pretty. Power is always a mess. And GE Capital continues to empty the company of its cash.
But Wall Street bets that Culp managed to get GE out of the abyss.