Investing.com – Shares in General Electric (NYSE:GE) slumped 5% on Monday, leading decliners on the Dow, as analysts downgraded the conglomerate after quarterly earnings released last week and concerns that the firm may cut its dividend in November.
Morgan Stanley downgraded GE to underweight from equal weight as these analysts see a higher probability that the firm will cut its dividend, although they noted that the action could lead to better cash flow next year. These experts also reduced the price target by $3 to $22.
For much the same reasons, UBS also cut its recommendation on the stock to neutral from buy while lowering their price target to $24 from the previous $31.
At 11:26AM ET (15:26), shares in General Electric traded down 4.76% to $22.70.