Shares of General Electric Company (GE) fell more than 3% on Thursday after JPMorgan cut its price target on the stock to $10.00. The analyst team believes that recently disclosed problems with GE’s gas turbines could spell more trouble for the firm’s power division. The company recently identified issues that could affect the lifespan of a single blade component.
GE countered that it has already identified a fix and has been working with operators to address affected turbines. Furthermore, the company believes that the minor adjustments don’t make the product any less impactful, saying that its customers are meeting or exceeding their performance goals. The problems come as the company continues to sell off its assets in an attempt to trim down its massive footprint and focus on its core competencies. (For more, see: GE Forced into ‘Vicious Cycle’ as Power Division Eats at Profits: UBS.)
General Electric stock lost ground on concerns related to the company’s gas turbines, but traders will be keeping an eye on these key levels. …read more
Read more here: GE Rally Loses Steam, Tests Key Support