General Electric shares continued to plumb new depths after Bank of America Merrill Lynch downgraded the troubled bellwether on Monday.
The shares fell 0.55 percent Monday to close at $16.17 and touched an intraday low of $15.80, their lowest in six years. The stock fell last week below $17 a share after GE said earlier in the week that it would take a $6.2 billion after-tax charge because of its GE Capital insurance portfolio and that it expects to contribute $14 billion over the next seven years to shore up the company's reserves.
Analyst Andrew Obin told investors that the industrial conglomerate is likely to slash its 2018 outlook when it reports fourth-quarter results on Wednesday.
Our outlook "reflects lower earnings estimates, zero equity value assigned to GE Capital, and lower value assigned to GE Digital initiatives, as we don't see the market paying up for this optionality," wrote Obin in a note to clients. "The relative size of the charge vs. expectations and limited disclosure related to potential off-balance sheet liabilities once again raise a question about the credibility of the current guidance and capital structure framework."