GE announce Restructuring, Morgan Stanley says the deal is Equity friendly, remains bullish on GE

Morgan Stanley issued a report on Friday highlighting General Electric Company

after the announcement of a significant restructuring deal. Currently Morgan Stanley rates GE as Equal-weight while a price target is unavailable. Nigel Coe and Michael Sang, analysts at Morgan Stanley, wrote, "GE has announced a restructuring of GE Capital that envisages a sale of its mid-market commercial lending and leasing businesses, remaining consumer assets ex-SYF holding, in addition to the announced sale of its real estate assets to Blackstone and others….we stay bullish since higher multiple industrial earnings mix-up,and we believe that remaining verticals earnings will not suffer a significant discount." Morgan Stanley believes that this deal would reduce GE Capital to its core industrial verticals. $35 billion of capital is expected to be raised from these transactions while accounting for $2.5 billion of income in 2016. Morgan Stanley believes that one of the reasons for the restructuring is that GE is working with regulators to declassify itself as a SIFI. Overall, analysts believe that the restructuring is equity friendly long term. Former CEO Jack Welch offered his take on the deal: "I like the package. It looks like a smart move and right for the changing financial landscape." General Electric Company last closed at $25.73.