General Electric Company (GE) Gets Its Lowest Price Target Yet

The General Electric Company (NYSE: GE) stock market is about 9 percent of the time.

J.P. Morgan analyst Stephen Tusa is the latest stock price for GE stock. Tusa has reiterated his "underweight" rating and cut his target by 40 percent from $ 10 to $ 6. Tusa says there's no reason for GE earnings optimism in the near term.

"While liquidity is certainly debatable, we believe this is not really about liquidity, it's about deterioration in run rate fundamentals," Tusa says.

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In October, 90 percent to just 1 cent per quarter. The company said the dividend cut, its in the past year, will allow $ 3.9 trillion in much-needed cash as it tries to navigate a difficult power market.

Tusa says that even after a 71 percent decline in the past three years, GE stock is still overpriced.

"Out of the eight reported segments, all of which have been profitable even two years ago, are currently underway with the time," he says.

Investors have high hopes for new CEO Larry Culp's restructuring strategy, but Tusa says it seems to be a bit of a problem.

According to CNN, Tusa's $ 6 price target is the lowest among the 18 Wall Street analysts who cover the GE stock, but he says the $ 6 price target is based on "generous" 2020 projections and a sector average multiple earnings.

Tusa is not the only analyst that is skeptical of GE stock in the near term. Bank of America analyst Andrew Obin says a turnaround will likely be a long, painful process.

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"We think recent news on GE's weakening market share together with headlines on H-Frame Engineers' highly emotional impact on GE Power's competitive position," Obin says.

"We think it might take some time for the new CEO Larry Culp to turn the long-cycle business around."

Bank of America has a "neutral" rating and $ 12 price tag for GE stock.

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