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General Electric's stock falls as JPMorgan outlines bearish case

Jeff Immelt
Udit Kulshrestha | Bloomberg | Getty Images
Jeff Immelt

Shares of General Electric fell almost 1 percent Thursday after analysts at JPMorgan raised questions about the company's valuation.

"While recognizing a bold portfolio transformation, and solid technology potential, we think these positives are more than reflected in GE stock at current levels, and on the numbers, we see an unfavorable risk/reward, given a stubbornly high expectation forward earnings curve, and weak underlying earnings quality/[free cash flow], at a premium valuation," they said in a Thursday note to clients.

JPMorgan resumed its coverage of the stock with an "underweight" rating and a price target of $27.

GE shares traded near $30 on Thursday.

Over the past year, GE's stock has gained more than 11 percent, but it has fallen more than 3 percent in 2016.

GE this yearSource: FactSet

Disclosure: JPMorgan is a market maker for GE.