Deutsche Bank analyst Nicole DeBlase thinks the key debates over General Electric can be boiled down to the trajectory of GE Industrial free cash flow and whether the company is headed for a liquidity crisis. In a new research report titled “Laying Out a Realistic Bear Case,” the analyst walks through a new base and bear case free cash flow analyses. The bad news is that in the bear case, GE Industrial free cash flow remains in negative territory through 2021, DeBlase writes. The analyst built up a segment-by-segment bear case earnings model, which assumes continued declines at Power and modest downturns in Renewables, Aviation and O&G. The “good news,” however, is that even in this “drastic scenario,” the analyst does not foresee a liquidity crisis. Nevertheless, the analyst cut her price target for General Electric shares to $7 from $11 and keeps a Hold rating on the name. The stock closed yesterday up 20c to $7.94. DeBlase’s price target relies on her base case, not her bear case. Her base case “embodies a more likely scenario,” whereby an economic downturn does not happen through 2021.