'We're quite bullish on what's going on at GE right now," said Morningstar analyst Barbara Noverini, who maintains a hold rating.
She added, "In shedding those financial assets, we believe they are de-risking their portfolio and that's allowing them to focus on the part of the business that we believe they have the most competitive advantage in, and that's industrials."
Over the long-term, she said investors will be rewarded with a 'higher-quality' earnings stream stemming from the industrials part of its business.
GE Capital represents $200 billion in ending net income, the company said, and is on track to shed $100 billion of those assets by the end of this year.
Shares have returned 6% since the Fairfield, Conn.-based company's April 10 announcement of its GE Capital spinoff, which is also when the stock hit a high for the year, reaching $28.51 a share, Bloomberg data revealed. The stock currently trades near $27.31.
Going forward, GE can allocate more resources to strengthening its core industrials business.
"What we like seeing is that a lot of internal resources have been reinvested in this research and development function that is the vital, driving force in GE's overall business," Noverini said. "As CEO Jeffrey Immelt focuses his attention and capital resources on bolstering the R&D part of the business, we believe that's going to revitalize GE's product portfolio going forward, and that's going to serve as the foundation for stronger cash flows and earnings."
In three years, the company anticipates its industrials business to drive 90% of the company's profits, compared to 54% in 2014.
She suggests investors take a long-term perspective when it comes to GE's shift to focus on industrials.
Shares have returned 8% since the start of the year. The analysts at Credit Suisse and Bernstein maintain an outperform rating, while Stifel holds a buy rating.