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GE shares plunged up to 6% in pre-market deals Monday as an influential analyst of JPMorgan – and a critic of GE for many years – Stephen Tusa has downgraded his rating to the sub-prime performance. It's in December that Tusa has surprisingly raised its rating. Tusa lowered its price target on GE shares from $ 1 to $ 5, suggesting that it could fart more than 50% from current levels.
Tusa returned to the well, focusing on GE's pressured cash position during his last attack. The analyst believes that Wall Street "significantly exceeds" the rebound in free cash flow in the coming years. Underperforming traditional assets in the insurance and energy sectors will likely weigh on the company's cash flow, says Tusa.
Tusa is not the only one to take a bearish position on a title that, as if by magic, has gained 55% from the December low, hopes that the new CEO, Larry Culp, will stabilize the activity this year and offer a recovery by 2020.
"This time around, we find it extraordinary that some analysts suggest that GE's potential loss of free cash flow could reach $ 4 billion this quarter (compared to a loss of $ 1.7 billion in 1Q18 would be "fair" or "expected". "said Monday John Inch, analyst and critic of GE Gordon Haskett. "We think the magnitude of the cash losses could be both very problematic and unwelcome by the bond market and the rating agencies. It would also mean that GE would gradually build on its revolver and that its debt-to-EBITDA ratio would rise, which would not advance the debt issue in the right direction. "
Inch maintained its underperformance rating and its $ 7 price target on GE. GE will announce its first quarter results later this month.
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "GE said 2019 would be a "reset year""data-reactid =" 21 ">GE said 2019 would be a "reset year"
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Culp continues to shoot unhindered in his comments on spinning the company, say & nbsp;Wall Street at a day of investors in March& nbsp; 2019 will be a "reset year" and GE's challenges are "complex". Jamie Miller, chief financial officer, told Yahoo Finance that Culp envisioned GE with a "realistic vision", unlike many others the company over the years. "data-reactid =" 22 "> Mr. Culp continues to criticize his comments, and announced on Wall Street, at a day of the investor in March, that 2019 would be a" reset year " and that GE's challenges are "complex." Jamie Miller, chief financial officer, told Yahoo Finance that Culp envisioned GE with a "reality lens," to the detriment of many other company leaders over the years.
Investors seem to have forgotten these realities, and there are many. GE, for example, sees its first quarter results down "significantly," as it resolves its power issues and GE Capital business.
However, some analysts such as Tusa and Inch have surely not forgotten these realities.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Brian Sozzi is a senior editor at Yahoo Finance. Follow him on Twitter @BrianSozzi"data-reactid =" 25 ">Brian Sozzi is a senior editor at Yahoo Finance. Follow him on Twitter @BrianSozzi
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Read more:"data-reactid =" 26 ">Read more:
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