GE tumbles as analyst returns to bearish view

Bloomberg

General Electric (GE) fell in pre-market trading on Monday after a key analyst at JPMorgan returned to a bearish view on the stock, reversing a December upgrade that had provided a major boost to positive sentiment.
Steve Tusa downgraded the shares to underweight from neutral and trimmed his price target by $1 to a Street-low view of $5, a level that suggests shares of the industrial conglomerate could lose half their value from their closing price. Shares are down 5.4 percent before the bell.
“Investors are underestimating the severity of the challenges and underlying risks at GE, while overestimating the value of small positives,” Tusa wrote, noting a recent advance in the stock. “The Street is significantly over-projecting the bounce in [free cash flow] in the coming years, off levels that we calculate at zero currently.”