J.P. Morgan slashed its price target from $14 to $11, the lowest GE price forecast out of the 16 research shops that cover the company, according to FactSet. The industrial company already cut its dividend in half in November 2017. It currently has a 3.2 percent dividend yield.
"We still see structural concerns in the key Power markets, minimal margin for error on leverage," analyst Stephen Tusa wrote in a note to clients Tuesday. "On the dividend, we have heard some espouse the 3% yield that is above the sector average. The issue is that while it's not necessarily cut near term, it is not growing, and at a ~95% payout on post divestiture FCF it's still high risk."
The company's shares fell 4.4 percent Tuesday after the J.P. Morgan report. GE shares have significantly underperformed the market. The stock has declined 49 percent in the past 12 months through Monday versus the S&P 500's 17 percent return.