JPMorgan lists dividend cut to 60c, exiting Baker Hughes as options for GE - InvestingChannel

JPMorgan lists dividend cut to 60c, exiting Baker Hughes as options for GE

JPMorgan analyst C. Stephen Tusa, while continuing to believe shares of General Electric (GE) should go lower, thinks a “myriad of potential moves” from the company are forthcoming. Visibility around potential actions will improve starting this Friday with the earnings report, Tusa tells investors in a research note. The analyst believes potential steps by management include raising $8B of debt for pension funding, undertaking a restructuring to save $2B-$3B, exiting Baker Hughes (BHGE) via a share exchange and selling the Transportation unit for a combined $30B-$35B, and/or cutting the dividend to 60c per share from the current 96c. The latter would free up $3B in additional available cash flow per year, Tusa points out. The analyst keeps an Underweight rating on GE shares with a $20 price target.

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