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Friday, February 1, 2019

Top GE analyst Tusa was not impressed by earnings: 'Scratching our heads at the stock reaction'

General Electric shares soared to their best day in a decade following the Thursday's fourth-quarter earnings report but J.P. Morgan analyst Stephen Tusa remained unconvinced by GE's results.

"We come away from the 4Q scratching our heads at the stock reaction," Tusa said in a note to investors. "We believe one has to make highly optimistic assumptions to get back to a run rate that supports anything near $10."

CEO Larry Culp did not provide a forecast to shareholders for GE's 2019 earnings, instead saying industrial revenue would be up "low-to-mid single digits" next year.

GE shares slipped 1.2 percent in premarket trading. The stock soared nearly 12 percent following GE's report, closing above $10 a share for the first time since November.

This story is developing. Please check back for updates.

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