GE Soars 12% As 'Biggest Bear' Upgrades Stock To "Neutral"

A day after collapsing to the ominous $6.66 March 2009 closing lows, GE stock is soaring in the pre-market after long-time bear JPMorgan analyst Steve Tusa upgrades the company to neutral from underweight.

Citing the fact that the liabilities and “known unknowns” are better understood and priced into the stock price, Tusa (who has been a "sell" since May 2016) wrote that:

“We believe a more negative outcome on these liabilities (equity dilution, for one) is at least partially discounted, and it’s possible that the company can execute its way through an elongated workout that limits near-term downside,”

And that was good enough to juice the stock up 12% in the pre-market...

 

Still, he warned that a reset in free cash flow expectations may be necessary, even as it could provide a bottom for the stock.

Additionally, as Bloomberg reports, GE Digital said it would sell a majority stake in its ServiceMax cloud-based field-service software to Silver Lake and create a new industrial Internet-of-things firm with starting annual revenue of $1.2 billion.

As one wise old equity trader said to us on the news of another bottom-caller - "It can't get any worse... right?" - well it can still fall 100% more from her.