The fallout from the U.S. crackdown on Huawei intensified this week, as trade negotiations between Washington and Beijing reportedly hit a roadblock.Asia Marketsread more
The issue of corporate debt has surfaced as companies continue to use the low rates the Fed has provided to lever up their balance sheets.The Fedread more
The U.S. government on Monday temporarily eased some trade restrictions imposed recently on China's Huawei, a move that sought to minimize disruption for the telecom company's...Technologyread more
Most U.S. hedge funds aren't expecting another big stock market sell-off as more firms curb bets on volatility, according to Nomura.Marketsread more
Mall owners are increasingly building out food halls with local chef-driven eateries, sushi bars and premium coffee shops.Retailread more
While Trump's lawyers had argued that the committee's subpoena did not have a legitimate legislative purpose — and was therefore invalid — Mehta took a broader view.Politicsread more
See which stocks are posting big moves after the bell on Monday, May 20.Market Insiderread more
Binny Bansal, co-founder of Indian e-commerce giant Flipkart, says there are three traits that led to the business landing a record-breaking sale to retail giant Walmart.Entrepreneursread more
Silicon Valley argues that Wall Street focuses too much on near-term profits — but investors have embraced money-losing biotech IPOs.Marketsread more
U.S. President Donald Trump told his supporters in Pennsylvania that his high-stakes trade war with China had strengthened the state's steel industry and jobs.Politicsread more
Iran has quadrupled its output of nuclear material amid rising tension with the U.S. and dangerous escalations in the Middle East.Energyread more
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.
The firm laid out "new detailed base and bear case" free cash flow analyses, DeBlase said, but Deutsche Bank will "ignore the bull case for now since it probably wouldn't be viewed as credible."
In Deutsche Bank's base case, or most likely, scenario, GE would see about 34 cents per share of free cash flow in 2019 and 25 cents per share in 2020. DeBlase said upside for GE under Deutsche Bank's base case comes down to: "Positive trends in the company's Power business, upside to debt reduction targets, improved margin dynamics in the company's renewable energy business, general economic strength."
DeBase said the firm sees "execution mishaps" from GE Chairman and CEO Larry Culp's strategy review as a key risk moving forward, as well as outside factors like an economic downturn or "geopolitical instability."
Deutsche Bank stuck to its hold rating on GE shares, saying the stock now has "limited downside." The firm's price target is a cut from the previous $11 a share.