GE's price target has been reduced from $ 10 to $ 6 by JPMorgan, the lowest analyst on Wall Street

Shares of General Electric Co. fell more than 7% in nadir on Friday to their lowest level since March 2009, after Stephen Tusa, an analyst at JPMorgan Chase & Co., reduced his price target to $ 6 from $ 10 to $ 6. The recent results of the industrial conglomerate have been worse than expected on almost all fronts.

The stock has fallen 38% in the last month, due to the loss of its latest results and the downgrading of the ratings of the top three rating companies.

Tusa now has the lowest target of Wall Street analysts covering GE

GE, -7.80%

cement its bearish reputation. Free cash flow and EBITDA forecasts, or earnings before interest, taxes, depreciation and amortization, have declined significantly in GE's latest report, he said, while a significant change in language from the regulatory filing suggests a negative decline in leverage.

"Some buyers now believe that liquidity problems are driving the weakness of share prices, although this is not consistent with the reality of the cases, a liability of 100 billion dollars and zero free cash flow, even after a 95% reduction in the dividend. , Writes Tusa in a note. "Although the stock is down about 70% from the $ 30 high, this move still does not sufficiently reflect the fundamentals, in our opinion."

GE missed its earnings and earnings estimates during its last quarter, saying it would cut its dividend and reorganize its energy sector. Jamie Miller, chief financial officer, said the issues that hinder the company's energy-related business "will persist longer and have a deeper impact" than originally planned, leading GE to "fail significantly "its cash flow goals and profits for the year, according to a transcript provided by FactSet.

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Management indicated that it was still considering reducing its debt, but the company's 10-Q quarterly report indicated no reference to more than $ 15 billion in cash at the end of the year, or $ 25 billion reduction in industrial debt, Tusa noted.

"More importantly, the asset reduction at GECS was not worth $ 25 billion, according to our recent analysis, which shows that the value of GECS assets is overestimated if we consider nominal assets in this assessment, "he wrote.

Tusa expects a deterioration in fund management fundamentals and expects that by 2020, six of the eight segments will post free cash flow "zero".

The proposed restructuring is far from being a "kitchen sink" approach, with only moderate staff costs and a restructuring of cash not fitting in with the forecast, he wrote. Tusa is about 60% below the Wall Street consensus for 2019 and 2020, but thinks it is still possible to fall.

JPMorgan is underweight in its action.

Shares fell 47.9% in 2018, while the S & P 500

SPX, -0.82%

gained 4% and the Dow Jones Industrial Average

DJIA, -0.60%

has advanced by 5%.