General Electric Co shares are now worth less than $5 each, analysts from J.P. Morgan said on Monday, valuing the U.S. conglomerate at less than $44 billion and predicting it is yet to reach a turning point in efforts to reboot its businesses.
The bank’s Stephen Tusa, among the bearish group of analysts on GE who have predicted its fall from grace over the last three years, said he was withdrawing his price guidance on the company completely due to doubts over how much it was now worth.
GE shares fell about 1% to $6.54 in premarket trade, adding to a steep decline that has seen the company lose more than 40% of its market value this year.
Tusa said the company’s inability to forecast positive cashflow for the second half of 2020 suggested management is unclear about its financial outlook over the next 3-6 months and that hopes of better results next year may prove illusory. (end of excerpt)
Click here for the full story, on the Reuters website.