Shares of global industrial conglomerate General Electric Co. (GE) continue to nosedive this week on a bearish research note from a top Wall Street firm Thursday. As GE stock reflects a dismal 25% decline year-to-date (YTD) versus the S&P 500’s 10% rally over the same period, JPMorgan’s Stephen Tusa foresees further downside, suggesting the firm’s earnings and business trends will continue to deteriorate. (See also: The Future of General Electric: The Red or Blue Pill?)

Even after the major sell-off of GE shares, Tusa tells clients in a note entitled “Preparing for the Fall: It’s worse than we think,” that GE’s valuation is “expensive, with limited incremental catalysts to change the narrative.” JPMorgan sees the Boston-based company’s core operating performance as “below plan,” indicating that the consensus expectations curve is too high and free cash flow is “the weakest in the sector.” Given that narrative, and while visibility is low, analysts see “downside risk to our well below consensus estimates.”

A $24 Ceiling

The investment bank, which rates GE shares at underweight, maintains a $22 price target, indicating an 7% downside from Friday afternoon. “We view $24 as a ceiling opposed to a floor prior, with something in the high teens as an investable fair value,” wrote Tusa.

On Thursday, GE announced plans to sell the last of its stake in Penske Truck Leasing Co. for $674 million as part of a larger effort in which it has shed more than $201 billion in assets to refocus its GE Capital business. In June, GE finally replaced former Chief Executive Officer Jeff Immelt with John Flannery in hopes to revive shareholder confidence as the company continues to underperform the market. (See also: GE's New CEO Buys Shares Worth $2.7M in Show of Confidence.)

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