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GE shares tumble below $9 as JP Morgan analyst cuts price target

11/09/2018 | 01:36pm EDT
FILE PHOTO: The General Electric logo at their subsidiary company GE Aviation in Santa Ana

NEW YORK (Reuters) - Shares of General Electric Co tumbled on Friday after a JP Morgan analyst slashed his target price on the stock to a lowly $6, dealing a fresh blow to the U.S. industrial conglomerate's flagging share price.

GE shares sank 7.3 percent to $8.44 in afternoon trading, and dropped to as low as $8.15. The stock price fell below $9 (7 pounds) for the first time since March 2009, during the throes of the financial crisis.

Friday's research note from JP Morgan analyst Stephen Tusa followed GE's third-quarter results late last month, in which the company posted a staggering loss of $22.8 billion and said it faced a deepening federal accounting probe.

Tusa, who has long been bearish on the stock, said out of GE's eight reported segments, "all of which were profitable even 2 years ago, 6 are now likely either at or below zero in 2020."

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

Noting the steep drop for GE shares from $30 in early 2017, Tusa said "this move still does not sufficiently reflect the fundamental facts, in our view."

Tusa kept his "underweight" rating on the stock as he cut his price target to $6 from $10.

Following Tusa's note, GE spokeswoman Jennifer Erickson said in a statement: "GE is a fundamentally strong company with a sound liquidity position. We are taking aggressive action to strengthen our balance sheet through accelerated deleveraging and position our businesses for success."

GE shares, which were booted from the blue-chip Dow Jones Industrial Average earlier this year, have now slumped some 50 percent in 2018 alone.

Some on Wall Street are optimistic that new Chief Executive Larry Culp, former head of Danaher Corp who took over on Oct. 1, will be able to spark a turnaround for the company.

(Reporting by Lewis Krauskopf and Alwyn Scott; Editing by Bernadette Baum)

By Lewis Krauskopf and Alwyn Scott

ę Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
CULP, INC. -0.07% 14.89 Delayed Quote.-6.18%
DANAHER CORPORATION 1.62% 297.63 Delayed Quote.33.98%
DJ INDUSTRIAL 0.44% 35084.53 Delayed Quote.14.55%
GENERAL ELECTRIC COMPANY 1.22% 13.29 Delayed Quote.23.06%
NASDAQ 100 0.20% 15048.361989 Real-time Quote.16.05%
NASDAQ COMP. 0.11% 14778.263734 Real-time Quote.13.75%
S&P 500 0.42% 4419.15 Delayed Quote.17.18%
07/28INSIDER TRENDS : Insider at Danaher Corp Acquires Stock Via Option/Derivative Se..
07/27DANAHER : Unit, Cytiva Team Up to Invest $1.5 Billion to Expand Manufacturing Ca..
07/27CYTIVA : and Pall Corporation investing 1.5 billion USD over two years to meet g..
07/26DANAHER : Four Sustainability Kaizens Add Up to Savings
07/26DANAHER CORP /DE/ : Other Events, Financial Statements and Exhibits (form 8-K)
07/26DANAHER : Beckman Coulter to Distribute BNP Cardiac Assay to Customers
07/23DANAHER : Goldman Sachs Adjusts Danaher's Price Target to $320 from $280, Keeps ..
07/23DANAHER : JPMorgan Adjusts Danaher's Price Target to $310 from $280, Keeps Overw..
07/23DANAHER : Wells Fargo Adjusts Danaher's Price Target to $320 from $290, Keeps Ov..
07/23DANAHER : Baird Adjusts Danaher's Price Target to $305 From $270, Reiterates Out..
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Financials (USD)
Sales 2021 28 653 M - -
Net income 2021 6 160 M - -
Net Debt 2021 13 539 M - -
P/E ratio 2021 36,0x
Yield 2021 0,29%
Capitalization 212 B 212 B -
EV / Sales 2021 7,89x
EV / Sales 2022 7,38x
Nbr of Employees 68 000
Free-Float 74,2%
Duration : Period :
Danaher Corporation Technical Analysis Chart | DHR | US2358511028 | MarketScreener
Technical analysis trends DANAHER CORPORATION
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 23
Last Close Price 297,63 $
Average target price 313,63 $
Spread / Average Target 5,38%
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Managers and Directors
Rainer M. Blair President, Chief Executive Officer & Director
Matthew R. McGrew Chief Financial Officer & Executive Vice President
Steven M. Rales Chairman
Jose Carlos GutiÚrrez Ramos Chief Science Officer & Senior Vice President
Brian W. Ellis Senior Vice President & General Counsel
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