Deutsche Bank slashed its General Electric price target to $7 a share on Friday, saying revenue for the conglomerate's struggling power business "remains flattish but does not continue to decline."
"We think the key debates can be boiled down to the trajectory of GE Industrial [free cash flow] and whether the company is headed for a liquidity crisis," Deutsche Bank analyst Nicole DeBlase said in a note to investors. The firm's base case assumes "an economic downturn does not happen" through the end of 2021, DeBlase said.
Even in Deutsche Bank's bear case, DeBlase said the firm does "not forsee a liquidity crisis."
GE shares fell 4.3 percent in trading.