General Electric (GE - Get Report) shares extended declines Monday after J.P. Morgan analyst Stephen Tusa said he's holding on to his "below consensus" underweight rating on the stock even after last month's stronger-than-expected second quarter earnings.

Tusa, who is also keeping his $5 price target in place, said GE Power would need a core profit contribution of around $1 billion ""to just get back to breakeven", while Aviation would need to see a 35% improvement in its military business in order to meet profit guidance levels provided by the company. He also said the stock remains expensive on a free cash-flow basis, 

"Despite the Street's enthusiasm around a beat to low guidance, fundamentals on net continue to look negative, tough to turn in long cycle markets, especially when technology is lagging," Tusa said in a client note published Monday.

GE shares were down 1.53% following release of the note to change hands at $9.01, a move that still leaves the stock with a year-to-date gain of around 19%.

GE boosted its full-year profit guidance after a better-than-forecast set of second quarter earnings figures in one of the best indications to date that CEO Larry Culp's turnaround plans are starting to gain traction.

Looking into 2019, GE said it sees adjusted earnings per share in the region of 55 cents to 65 cents per share, and altered its forecast for industrial free-cash flow to a range of negative $1 billion to positive $1 billion.

"We made steady progress on our strategic priorities in the second quarter. Our top-line growth was solid, and Power made meaningful improvements on fixed cost reduction and project execution," Culp said. "Due to improvements at Power, lower restructuring and interest, higher earnings, and better visibility at the half, we are raising our full-year outlook for Industrial segment organic revenues, adjusted EPS, and Industrial free cash flows, and we are holding our margin guidance."

General Electric said its loss for the three months ending in June was pegged at 1 penny per share, or 3 cents per share when looking at continuing operations.

On an adjusted basis, however, GE earned 17 per share, a figure that compares to last year's 8 cent profit and a Street consensus forecast of 12 cents per share. Group revenues, GE said, fell 4.3% from last year to $28.8 billion, a tally that modestly topped analysts' forecasts of $26.6 billion.