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An employee helps install a traction motor onto the truck of a General Electric Evolution Series Tier 4 diesel locomotive at the GE Manufacturing Solutions facility in Fort Worth, Texas.
J.P. Morgan cut its 12-month price target on General Electric to just $6 a share on Friday, the lowest on Wall Street.
“The outcome of GE results was worse than expected on almost all fronts,” J.P. Morgan’s Stephen Tusa said of the company’s third quarter earnings. “While liquidity is certainly debatable, we believe this is not really about liquidity, it’s about a deterioration in run rate fundamentals.”
“While the stock is down ~70% from the peak of $30, this move still does not sufficiently reflect the fundamental facts, in our view,” Tusa said.
GE shares fell 3.1 percent in premarket trading.