Starting Monday morning off with a bang, Trian Fund Management announced that it had acquired a stake of 98.5 million shares in General Electric Co. (NYSE: GE) valued at approximately $2.5 billion. Trian principal Nelson Peltz is on the prowl again after failing to achieve his goals at DuPont.

According to the statement from Trian, Peltz said:

We invested in GE because it is undervalued and underappreciated by the market despite what we believe is a transformation that will allow its world-class industrial businesses to drive attractive shareowner returns.

Trian’s chief investment officer and founding partner, Ed Garden, added:

Trian believes GE has significant long-term potential and that its implied target value per share, including dividends, could be $40 to $45 by the end of 2017 based on our view that GE can deliver EPS of at least $2.20 in 2018.

Given that GE’s shares closed at $25.47 on Friday, figure even at the $40 target, less a $2 dividend, that’s a gain of about $12.50 per share. That’s a profit of roughly 50% in a little more than two years.

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In a white paper discussing its investment, Trian lauds GE’s transformation back to its roots as an industrial powerhouse:

In short, prior to GE’s “pivot,” its great businesses were overwhelmed by the bad ones and the underlying defensive growth of GE’s core businesses was obfuscated. … We believe in GE’s transformation and that management is committed and able to execute on its plan going forward. We believe the stock is undervalued at <14x 2015 pro forma earnings. We see a path to ~$40-$45 of implied value per share by the end of 2017 and will seek to work with management to help realize this value. Trian has not asked for a board seat but expects management to deliver on its commitments.

GE CEO Jeffrey Immelt said in a statement:

We welcome Trian’s significant investment in the Company. GE maintains an open dialogue with our shareholders and enjoys productive, collaborative relationships with them. … Trian has a strong track record of working with companies to build long-term shareholder value, and has been an engaged shareholder. We appreciate their perspectives and look forward to a constructive ongoing dialogue with Trian as we execute our strategy to reshape the Company. …

[W]e have a plan to return more than $90 billion to investors through 2018 and are on track to complete our goal of closing $100 billion of GE Capital asset sales in 2015. We are transforming GE into a focused infrastructure and technology company, leading the intersection of the physical and analytical worlds.

Sure sounds like a marriage made in heaven, but the honeymoon hasn’t even started yet.

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GE’s stock was up about 3.0% Monday morning, at $26.46 in a 52-week range of $19.37 to $28.68. The consensus price target on the shares is $29.77, and the forward price-to-earnings ratio for the year ending December 2016 is 17.23.

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