JPMorgan's (JPM - Get Report) Stephen Tusa, one of the highest-rated analysts on Wall Street and long-time critic of GE's (GE - Get Report) flagging business model, said investors are "underestimating the severity" of challenges and risks at the company while "overestimating the value of small positives." Tusa lowered his price target for GE by $1 to $5 a share, the lowest among major banks covering the firm, and cut his outlook to "underweight" from "neutral." Tusa also said GE's power and renewables business "remains weak" and that GE Capital Services will likely "consume material cash for the foreseeable future."

"The driver of the downgrade is our view that the Street is significantly over projecting the bounce in (free cash flow) in the coming years, off levels that we calculate at zero currently, as Power/Renewables remains weak," Tusa wrote. "GECS will likely consume material cash for the foreseeable future, Aviation fundamentals, as per underlying (free cash flow), are weaker than meet the eye, while lingering sector high leverage including entitlements leaves the company vulnerable to liquidity issues in the event of a recession, for which a potentially dilutive sale of the rest of Healthcare may be needed."

Related. GE Stock Jolted as Key Analyst Cuts Target Price

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