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Home > News > Valuable News > GE's performance was warned that its share price continued to fall

GE's performance was warned that its share price continued to fall

ECHEMI 2019-10-09

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According to foreign media reports, in an investor report, J.P. chase made an alarm. He warned shareholders that the value of one of the group's key businesses, the aviation sector, was much lower than most expected.

In recent years, most of GE's business departments have been struggling, but the general aviation sector has been a bright spot, with steady revenue growth and good order inventory. Currently, about two-thirds of commercial aircraft flights are powered by GE engines.

And J.P.'s report said, "the growth rate of general aviation business is obviously lower than market expectations, and the risk is great, so the market value support is even smaller." JP Morgan's rating on Ge was cut, and its target price was $5 per share at the end of 2020.

In addition, GE also sent out other negative news, indicating that the company's capital is under pressure. According to Bloomberg, GE has decided to freeze about 20,000 employees'U.S. pension plans. It will also freeze about 700 U.S. employees' supplementary pension plans. It is expected that the company will reduce the pension gap by about $5 billion to $8 billion. GE also expects to include non-cash pre-tax cuts in the fourth quarter related to the US GE pension plan and the supplementary pension freeze.

It would continue to evaluate company policies to reduce leverage and strengthen its balance sheet. By June 30, 2019, GE and its financial branches had borrowed $105.8 billion. The company has announced a $9 billion to $11 billion debt reduction plan, including a $5 billion offer to acquire its debt balance over the past month. At present, GE's share price has fallen by 20% from its peak in February. CNBC quoted Bill, chief executive of blue line futures, as saying that GE shares still have potential selling pressure. The slowdown in global economic growth has also made cyclical stocks like GE undervalued. Some analysts said that if you want to buy stocks, the premise is that the global economy needs to go back to accelerating growth, which may need to wait until early 2020. At present, the global economy is still in a slowdown stage and needs more stimulus measures, so it is not a good time to buy.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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