- "We were wrong," JPMorgan analyst Stephen Tusa admits, raising his call (made in April 2019) on General Electric (NYSE:GE) to Neutral from Underweight amid a six-month rally that has added more than 30% to the company's market value.
- He also lifted his price target by $3, to $8 per share, a notable change for the longtime GE bear.
- "We are upgrading GE as the spread between our free cash-flow estimate and consensus is narrower after a better-than-expected 2019, helped by less de-risking at GE Capital Services than we had thought around which it would take a recession to influence (which) is not our base case," he wrote.
- "With zero sells and multiple upgrades since CEO Culp took over, we see little debate about sentiment, and of note, GE has re-rated on a mark-to-market basis since year-end and now trades at a premium."
- GE +1.2% to $11/share premarket