GE's stock extends selloff toward 4-month low; J.P. Morgan's Tusa affirms bearish view

Shares of General Electric Co. slid 1.6% in afternoon trading Monday, to put them on track for the eighth loss in the nine sessions since the industrial conglomerate reported second-quarter results. The stock is on track for the lowest close since April 15. It has tumbled 14% since GE reported before the July 31 open earnings that beat expectations, but said its CFO was leaving after less than two months in the role. J.P. Morgan analyst analyst Stephen Tusa reiterated his underweight rating and $5 stock price target, which is 44% below current levels. He wrote in a note to clients that GE's results support his view that "the company may have fewer options than many think, forcing a protracted, drawn-out approach to the problems, a negative given cycle timing, and at odds with the message of urgency from last fall." The stock has still gained 23.7% year to date but has shed 26.7% over the past 12 months. In comparison, the Dow Jones Industrial Average has gained 11.4% this year and tacked on 2.6% over the past year.

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