Deutsche Bank analyst John Inch calls General Electric’s weaker than expected Q3 results this morning “shocking,” noting earnings came in 20c below the 49c forecast while 2017 cash flow guidance was cut almost in half. The analyst points out the Industrial tax rate was a negative 4%. After subtracting up to $2B for required pension contribution and $3B-$4B in capital spending, GE “falls well short” of generating enough cash to pay its $8B common dividend from operations, which raises the prospects of a pending dividend cut and/or raising financial leverage to pay for the dividend, Inch tells investors in a research note. He believes the decline in earnings per share to just over $1.00 this year suggests that a “sizable dividend cut is pending.” Inch believes the shares, at a 22 times price-to-earnings ratio, look “that much more expensive.” He keeps a Sell rating on GE with a $21 price target. The shares in premarket trading are down 7% to $21.93.