General Electric’s announcement of more trouble in 2019 was “worse than even we expected,” J.P. Morgan’s Tusa said.
General Electric shares are far overvalued given the pressures facing the company over the next two years, J.P. Morgan analyst Stephen Tusa said in a note on Tuesday.
"As long as this sentiment prevails, we don't think the stock can bottom. Our [price target] remains $6 and looks generous after today's news," Tusa said. He is widely regarded as the top GE analyst on Wall Street, gaining a following after his negative call in May 2016. Tusa estimates, given the negative free cash flow, that GE's 2019 earnings"has now become close to NEGATIVE" 50 cents a share. His firm previously estimated GE's earnings would be near positive 50 cents a share this year. Costs from restructuring GE"will be meaningful for several years," Tusa said, and there"will not be a sliver bullet to a fix."
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