General Electric news about a downgrade from an analyst has GE stock falling on Monday.
The downgrade for General Electric (NYSE:GE) stock comes from JPMorgan analyst Stephen Tusa. This downgrade from Tusa has him dropping GE stock from a rating of “Neutral” to a new rating of “Underweight.”
That isn’t the only bad General Electric news from the JPMorgan analyst. There’s also a drop to the price target for General Electric stock that goes along with the downgrade. This has Tusa giving the stock a new price target of $5 per share.
The new price target for GE stock is lower than the previous held by Tusa. His previous price target was $6 per share. These are both much lower than GE stock’s price of $10.01 when the markets closed on Friday.
“The driver of the downgrade is our view that the Street is significantly over projecting the bounce in (free cash flow) in the coming years, off levels that we calculate at zero currently, as Power/Renewables remains weak,” Tusa says in a statement obtained by TheStreet.com.
JPMorgan analyst Stephen Tusa last weighed in on GE stock back in December. It was at this time that the analyst gave the stock a “Neutral” rating. That was positive General Electric news at the time, as Tusa is typically bearish when it comes to the stock.
GE stock was down 8% as of noon Monday, but is up 24% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
