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Tuesday, January 29, 2019

GE shares turn negative after top analyst Stephen Tusa of JP Morgan gives warning before earnings

General Electric shares turned lower after widely followed analyst Stephen Tusa of J.P. Morgan put out his highly anticipated earnings preview on the company, which reports Thursday before the bell.

"We see an unfavorable risk/reward for GE stock into 4Q earnings, as the focus turns to hard data around run rate fundamentals, including near-term FCF, as well as any update on strategic de-leveraging plans to the extent they come, and the dilutive impact of such moves," wrote the analyst.

Tusa first warned investors in May 2016 that GE would decline, when shares were trading above $30.

GE shares fell 0.7 percent from Monday's close of $8.93 a share, after rising as much as 2 percent earlier in trading. Tusa's firm has a neutral rating on GE's stock, with a price target of $6 a share.

This is a developing story. Check back for updates.

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