After receiving an upgrade from JPMorgan's Stephen Tusa, General Electric is soaring. At 10:25 a.m., GE was up over 10% to $7.42 a share.
This was the first time in two and a half years and that the company had gotten an upgrade from JPMorgan.
TheStreet's Martin Baccardax broke the news.
Tusa lifted his rating to "neutral" from "underweight", a view he had held since May of 2016, and although he maintained an $8 price target on the stock, he said the ""known unknowns" surrounding the company are now easier to quantify.
"Key to the story, in our view, is the outcome of 'known unknowns' in near term, which are better understood and around which debate is more balanced, as opposed to being overlooked by most bulls in the past," Tusa said. "We now believe a more negative outcome one these liabilities (equity dilution is one) is at least partially discounted, and it's possible the company can execute its way through an elongated workout that limits near-term downside."
GE shares were marked 12.7% higher in pre-market trading, indicating an opening bell price of $7.56 each. The move would be the biggest single-day gain in more than two years and trim the stock's year-to-date decline to around 56%.
TheStreet's technical expert, Bruce Kamich, noted earlier this week that his charts were showing a "bullish divergence", but was doubtful the stock could produce a "meaningful advance" on its own.
Jim Cramer weighed in on what the upgrade means for GE and its CEO, Larry Culp.
You can find more coverage on General Electric on Real Money:
- General Electric Initiates $1.2 Billion Industrial IoT Effort as Stock Rebounds
- GE Stock Surges Higher on Key Analyst Upgrade
- General Electric's Larry Culp Is Good, Real Good
- Ask Jim: When Is the Right Time to Buy GE?
- General Electric Doesn't Deserve Your Time or Your Money
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