General Electric indicated it will tank this year, with cash flow and its struggling power business the main drags
General Electric Co. indicated it will tank this year, with cash flow and its struggling power business the main drags, but looks to starting turning around next year and start winning in 2021.GE investors appeared to embrace the company’s approach, as the stock bounced sharply, and extended gains as Chief Executive Larry Culp began speaking on a conference call.
“GE’s challenges in 2019 are complex but clear,” Culp said. “We are facing them head on as we execute on our strategic priorities to improve our financial position and strengthen our businesses.” Analyst Jim Corridore at CFRA cut his stock price target to $13 from $15, but kept his rating at buy, as ongoing asset sales should provide enough cash to help de-lever the balance sheet.
Culp acknowledged that Power has been “under-managed” for the past couple of years, as management was “slow to embrace market realities” and therefore slow to address its cost structure.
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