General Electric shares fall for a second straight session on Tuesday, GE Renewable Energy to supply turbines for British offshore wind project

According to a report by Reuters on Tuesday, GE Renewable Energy is to supply turbines for the offshore wind project of Britain’s Dogger Bank, which is being under development by Equinor and SSE.

General Electric shares closed lower for a second consecutive trading session in New York on Tuesday. It has also been the steepest daily loss since September 24th. The stock went down 3.69% ($0.33) to $8.61, after touching an intraday low at $8.51, or a price level not seen since September 4th ($8.40).

Shares of General Electric Company have risen 13.74% so far in 2019 compared with a 17.29% gain for the benchmark index, S&P 500 (SPX).

In 2018, General Electric’s stock went down 56.62%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

Dogger Bank’s three wind projects in the North Sea are expected to use the Haliade-X turbine by General Electric, which offers 12 megawatts of capacity, or the most powerful turbine worldwide.

Currently, the most powerful commercially operated turbine is Vestas’ 9.5-megawatt turbine.

“Dogger Bank will now be home to the largest offshore wind turbines in the world and this pioneering low carbon technology, which will play a central role in helping the UK become carbon neutral by 2050,” Paul Cooley, director of capital projects at SSE Renewables, was quoted as saying by Reuters.

The turbines for Dogger Bank will probably be manufactured at General Electric’s French facilities in Saint Nazaire and Cherbourg.

Great Britain is currently the largest offshore wind market worldwide, while the country intends to generate at least 30% of its electricity by using such a technology by the year 2030.

Analyst stock price forecast and recommendation

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $11.00, with a high estimate of $21.00 and a low estimate of $5.00. The median estimate represents a 27.76% upside compared to the closing price of $8.61 on October 1st.

The same media also reported that at least 9 out of 21 surveyed investment analysts had rated General Electric’s stock as “Buy”, while other 9 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.