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GE Slides to Lowest in Eight Years as Critical Analyst Slashes Target to $6

Anders Keitz

General Electric Co. fell to its lowest in more than eight years on Friday, Nov. 9, after one of its best-followed and most-critical analysts lowered his price target for the beleaguered industrial conglomerate to $6 a share. The move stripped GE of more than $6 billion in market capitalization. JPMorgan's Stephen Tusa, who had an underweight rating on the stock since May 2016, said the Boston-based company's third-quarter results were "worse than expected on almost all fronts," as he noted that forecasts for free cash flow and Ebitda are moving "materially lower." "Some sell-side bulls now point to 'liquidity concerns' as the driver of share price weakness, though this misconstrues the Real Bear Case -- namely $100 billion in liabilities and zero enterprise [free cash flow] even after a 95% dividend cut," Tusa wrote in a Nov. 9 research note.