08:54 AM EDT, 04/02/2024 (MT Newswires) -- General Electric ( GE ) completed the separation of its renewable energy business, GE Vernova (GEV), on Tuesday, wrapping up the company's multi-year transformation.

The industrial conglomerate will now become GE Aerospace and keep the GE ticker on the New York Stock Exchange. In 2021, the company announced plans to split into three independent entities to simplify its business structure and deliver long-term growth.

GE spun off global medical technology firm GE Healthcare (GEHC) in the beginning of 2023. It sought to merge its renewable energy, power and digital segments as a combined company and separate it this year, with the remaining GE to focus on aviation.

"With the successful launch of three independent, public companies now complete -- today marks a historic final step in the multi-year transformation of GE," GE Aerospace Chief Executive H. Lawrence Culp Jr. said in a statement. "GE Aerospace moves forward with a strong balance sheet and greater focus to invent the future of flight, lift people up and bring them home safely."

In March, GE Aerospace reiterated its full-year 2024 guidance for adjusted revenue to grow in the low-double-digits or more and free cash flow of less than $5 billion. For 2025, adjusted revenue is set to increase by low-double-digits, while the company anticipates a compound annual growth rate of a high-single-digit for the next three years, it said at the time.

GE Vernova will begin trading publicly after the opening bell Tuesday under the GEV ticker. RBC Capital Markets started coverage on the company with an outperform rating and a price target of $160. The firm is expected to benefit from "greater flexibility" and see "increased accountability across its business lines with the more focused portfolio," analysts led by Christopher Dendrinos wrote in a client note.

During its investor day last month, GE Vernova reaffirmed its revenue outlook range of $34 billion to $35 billion for full-year 2024 and adjusted earnings before interest, taxes, depreciation and amortization margin to be at the high end of a mid-single digit. Free cash flow is seen at $700 million to $1.1 billion.

"We see a path to 10% EBITDA margins by (the 2026 year), a year ahead of guide, and upside to longer-term growth targets with execution and increasing demand for electrification," according to RBC. "We believe GEV has reached an inflection point and margins across the portfolio are improving, driven by post-pandemic price increases, growing volumes, improving productivity and cost out initiatives."

Price: 140.6, Change: +0.75, Percent Change: +0.53