General Electric Co. (GE) may soon have to kiss its recent price gains goodbye.
By the market close on Tuesday, GE stock tumbled 4.44% to $14.43. Shares rallied about 1.1% in the previous trading session, but the stock remains down more than 48% in the last year.
Tuesday's fresh losses came amid a pessimistic new note from JPMorgan Chase.
The company's targeted full-year 2018 earnings per share of between $1 and $1.07 is "disconnected" from its free cash flow guidance of 75 cents, according to JPMorgan analysts, Bloomberg reported.
JPMorgan wrote in a note that it thinks General Electric's earnings per share will ultimately come "a step lower," as the $1 estimate isn't realistic. According to JPMorgan, the figure doesn't include continued restructuring or asset sales that will go to the company's balance sheet instead of its shareholders.
"GE isn't a safety stock in a more volatile market," JPMorgan wrote. There is "zero" potential from cost cuts at the company and any possible breakup of the firm would result in "dis-synergies."
Analysts cut their price target to $11 from $14, representing a 23.8% downside for shares from their closing price Tuesday. JPMorgan's new target is also well below Wall Street's average target price of $17.20, according to FactSet data.