Wondering why GE Stock is plummeting? Well it is because a number of analysts are now weighing in post earnings on what they consider to be weakness, mostly. GE Stock is moving on the analyst moves. Here is a summary of what has happened so far.
Morgan Stanley downgraded the stock to Underweight from Equal Weight, citing higher probability of a dividend reduction. PT reduced to $22 from $25.
UBS also lowered the stock to Neutral from Buy, following Friday’s “disappointing” Q3 results and “a lot of negative sentiment now reflected in the shares.” PT cut to $24 from $31.
Cowen sees a likely, sizable dividend cut and down 2018 EPS, with limited bounceback prospects in 2019. PT $22 from $24.
Melius Research: “Not sure there is much more the bears can fixate on from here. Buy rating on shares, with PT of $35.
William Blair: GE put its corporate transformation into overdrive. 2017, and not 2018, is now going to be GE’s trough year for adjusted EPS, with solid initial improvement expected in 2018.
Suntrust: GE’s notable strength in military aftermarket activity could be a source of upside surprise this quarter for suppliers with exposure.
Bank of America’s Andrew Obin, however, upgrades to Buy from Neutral, with $27 price target suggesting nearly 20% upside: “Our key assumption is that new Power outlook is conservative enough where it does not need to be revised down again.” Earnings revisions, he says, have been the key driver for GE’s stock price over the past ten years, and “negative revisions are bottoming.”