GE stock in free fall | Business

General Electric plunged to its lowest level of recession as the company's most bearish analyst said the stock's plummeting stock price was set to fall further.

JPMorgan Chase analyst Steve Tusa on Friday reduced his price target to $ 6, the lowest on Wall Street, due to higher liabilities, weaker cash flow outlooks, and more. poor third quarter results on "almost every front".

"Although the stock is down about 70% from the $ 30 high, this decision still does not sufficiently reflect the fundamentals," Tusa said in a note to customers.

Tusa's pessimistic view, which had predicted the collapse of GE in recent years, has fueled a decline in the stock that has wrecked $ 200 billion in market value since the end of 2016. GE is struggling with the 39, one of the most marked declines in its history. history of the year due to weak gas turbine demand, federal accounting surveys and high debt loads.

Stocks plummeted 10% to $ 8.19 at 11:21 am in New York, after falling to $ 8.15, the lowest price since March 29. GE had fallen to $ 6.66, the nadir's title during the global financial crisis.

Shares closed Friday at $ 8.58, down 52 cents on the New York Stock Exchange.

The Boston manufacturer said it was taking steps to strengthen its business. GE has streamlined its portfolio to focus on electrical equipment, jet engines and renewables.

"GE is a fundamentally strong company with a strong liquidity position," the company said via e-mail. "We are taking aggressive action to strengthen our balance sheet through accelerated deleveraging and positioning our businesses to ensure their success."

The company announced the surprise appointment of Larry Culp as CEO last month, replacing John Flannery. Culp still faces a weakened earnings per share outlook, Tusa said.

"We are skeptical of calls to a floor until management restores (earnings per share) expectations closer to free cash flow, something we believe we have not done for almost 20 years," he said. did he declare.

GE's third quarter results, released last week, missed analysts' estimates, while the company also reduced its dividend and revealed a thorough federal survey on its accounting.

Joel Levington, an analyst at Bloomberg Intelligence, echoed Tusa's concerns and said the company's filings included comments on "off-balance sheet and contingent liabilities, contingencies, litigation and liquidity", which, together, reinforces our concerns about GE's credit risk. . "