JPMorgan Issues a Grim Verdict Regarding General Electric Future

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According to JPMorgan Chase &Co, General Electric Co.’s stock has sunk even in deeper waters. The American corporation has grown its roots in a multitude of industries such as medical, power, research, healthcare, automotive, engineering software, and others. Nonetheless, it continues to dip in a slump that has already generated $64 billion in damages this year only.

New CEO John Flannery Prepares for Revealing His Vision for the Future of the Company in November

On Thursday, JPMorgan analyst Steve Tusa claimed that grim times are waiting for General Electric. The company received powerful hits from several industries within which it operates. As a consequence, shares might sink as low as $24 in the near future. On Wednesday, the shares showed a value of $24.92. The company hasn’t seen its shares below $20 since July 2012.

GE has recently changed its leadership. The new head is likely to resort to significant profit forecast cuts for the rest of 2017 and 2018 as well. John Flannery has replaced former CEO Jeffrey Immelt for only a month, yet he has already amassed great responsibility.

Flannery announced that he is going first to review the company thoroughly and present his vision on GE evolution in the month of November. In the meantime, he is also going to meet with investors and discuss their worries and expectations.

JPMorgan Lowered Price Target for General Electric to $22

Even with a fresh perspective for the company, Tusa has already lowered the price target to $22 on behalf of JPMorgan behemoth. He explained his decision as a way to reflect the present reality and not to respect a cycle.

So far this year, General Electric has been the biggest disappointment within the Dow Jones Industrial Average. The manufacturing organization went through a rollercoaster of earnings with predominant low curbs as power-generation markets suffered influence loss.

Tusa believes that the giant has no other choice than to start selling assets to supplement losses and get rid of unproductive segments. For the time being, the board set dividend payments as a top priority for the company.
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