JPMorgan slashes GE share price outlook more than 20%

By Economic IndicatorsFOXBusiness

General Electric asset sale may be advised by Bob Nardelli: Sources

Sources tell FOX Business’ Charlie Gasparino that former General Electric executive Bob Nardelli reached out to the company to help with the sale of its assets.

JPMorgan Chase analysts are still not convinced on GE’s (GE) turnaround plan, with the bank publishing a note Tuesday in which it slashed its share price target to $11 from $14.

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TickerSecurityLastChange%Chg
GEGENERAL ELECTRIC COMPANY15.26+0.29+1.94%

The note, entitled, “Breaking The Buck: How $1 Becomes $0.50 and Why the Great Reset is Not Quite Reset," as released by Seeking Alpha, says the company’s nominalized free cash flow per share should be around $0.50, half of the Street consensus of $1.

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Even worse, JPM reminded reminded readers that the $0.50 may not be the bottom point with the industrial conglomerate’s aviation business well away from the bottom. Analysts also pointed out that healthcare is not that cyclical. Also, the $1 estimate doesn't account for continued restructuring costs or asset sales that will go to the company's balance sheet instead of its shareholders.

The lowered price target to $11 from $14 implies more than another 20% downside for GE’s share price.