New York (CNN Business)The JPMorgan analyst World Health Organization predicted General Electric's downfall is warning of additional bother for the storied yank conglomerate.

C. Stephen Tusa Jr. downgraded GE (GE) to "underweight" on Mon and foreseen the stock can nearly get cut in [*fr1] to $5 by the tip of the year.
In a withering, 123-page analysis report, the potent JPMorgan (JPM) analyst argued the "risk/reward" for owning GE has "tilted back negative" as a result of the stock's 2019 spike hasn't been supported underlying modification.
"We believe several investors are underestimating the severity of the challenges and underlying risks at GE," Tusa wrote to shoppers, "while overestimating the worth of tiny positives."
GE's stock plunged octavo to $9.15 on the downgrade, creating it the largest loser within the S&P five hundred. The maker of sunshine bulbs and jet engines is in risk of suffering its worst day since last fall. GE was up thirty eight on the year as of Friday's shut.
Tusa's GE calls are powerful as a result of he cannily went negative on the enduring company in could 2016, once the stock was commercialism at $30. GE would eventually lose three-quarters of its price due to a money crisis sparked by mounting debt and poorly regular acquisitions. the corporate even got kicked out of the exclusive 30-stock Dow.
The JPMorgan analyst upgraded GE to "neutral" in Dec and spelled out a path for restorative the corporate. although Tusa voiced skepticism in this analysis report, his upgrade helped send the stock skyrocketing.