Thursday, 6 September 2018

GE shares plunge after UBS warns cost cuts force it into ‘vicious cycle’

General Electric is losing share in a “rapidly concentrated market”, the Swiss bank UBS said in a note, reducing GE’s price target to $13 a share as this year’s sharp drop in sales puts future earnings at risk. GE already made hefty cost cuts at its power unit, but sluggish demand and tough competition may require even more cuts UBS says, warning this could be “forcing GE in a vicious cycle.”

Subscriber content
  Full content is available only to subscribers
please log in below or subscribe now
Or request to register for a free 14 day trial here