General Electric plunged into the recession, when the company's most bearish analyst said the price premium is ready to fall further.
Analyst Steve Tusa, JPMorgan Chase, struck Friday's $ 6 target price, the lowest on Wall Street, referring to rising commitments, a weakening cash flow outlook and poor quarterly results on "almost all fronts."
"While stocks are down at around 70 percent from the top of $ 30, this move does not reflect the basic facts," said Tusa in a note to clients.
The pessimistic view from Tusa, predictable for predicting GE's collapse in recent years, dropped stocks that have erased $ 200 billion in market value since the end of 201[ads1]6. GE seizes one of the deepest downturns in Its 126-year history of weak demand for gas turbines, federal accounting surveys and heavy debt.
The shares tumbled 10 percent to $ 8.19 at 11:21 in New York after dropping to as low as $ 8.15, the lowest intraday price since March 2009. It was the same month GE fell to $ 6, 66, the share nadir during the global financial crisis.
Shares closed Friday at $ 8.58, down 52 cents in trading on the New York Stock Exchange.
Boston producer said it took steps to increase its business. GE has streamlined its portfolio to focus on power equipment, jet engines and renewable energy.
"GE is a fundamentally strong company with a solid liquidity position," said the company via email. "We take aggressive measures to strengthen our balance through accelerated subdivisions and position our businesses to succeed."
The company announced the surprise appointment of Larry Culp as CEO last year, replacing John Flannery. Culp still has to see a weaker outlook for earnings per share, says Tusa.
"We are skeptical about conversations for a bottom until management resets (earnings per share) expectations that are closer to free cash flow, something we think they have not done for nearly 20 years," he said.
GE's results in the third quarter , reported last week, missed analysts' estimates, while the company also slashed dividends and revealed an expanded federal probe in the accounts. 19659002] TUSA's concern was echoed by Bloomberg Intelligence analyst Joel Levington, who said that the company's regulatory submissions contained comments on "obligations on balance sheet, contingencies, litigation and liquidity items, which together reinforce our concerns about GE's credit risk. "