Why General Electric Stock Got Demoted Today
- The Motley Fool
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General Electric (NYSE:GE) stock took a tumble in Thursday morning trading, down 7.7% at 11 a.m. EST in response to mixed news out of Wall Street.
In a confusing tumble of analyst actions this morning, Oppenheimer first downgraded GE stock. Then Deutsche Bank, Barclays, and RBC Capital all raised their price targets on the stock. Then J.P. Morgan basically told all of the above that they're crazy: GE stock has "material downside," the optimists are overoptimistic, and the pessimists aren't nearly pessimistic enough!
Let me run that down for you. In today's sole downgrade, investment bank Oppenheimer cut GE stock to perform (i.e., hold) with no specific price target. At the same time, Oppenheimer praised GE for how it is executing its turnaround and predicted GE will return to generating between $4.2 billion and $4.4 billion a year from Aviation sales by 2023 or 2024 -- with total free cash flow per share of as much as $0.75 to $0.80 by the latter year, reports StreetInsider.com.