General Electric shares fell to a completely new 9-year low on Monday, dropping to levels not seen since July 13, 2009, as concern about a recent gas turbine failure in Texas hang over the embattled industrial conglomerate.
Shares of GE fell as far as $11.60 a share in trading, breaking past its previous low This particular year of $11.94 a share.
The stock closed at $11.46 a share on July 22, 2009 – a few months after in which hits its lowest point during the financial crisis, when in which closed $6.66 a share on March 5, 2009.
GE’s stock has fallen steadily This particular year, down 32 percent. The conglomerate’s stock has set completely new lows as investors remain unconvinced by CEO John Flannery’s turnaround plan along with its stagnant power business has hit completely new roadblocks, such as the Texas turbine failure along with no short-term turnaround in sight.
Several Wall Street analysts slashed GE cost targets This particular month due to the struggling power business. UBS cut its cost target to $13 via $16 for GE shares, saying the business will likely “require even more aggressive cost reductions, force GE into a vicious cycle.” J.P. Morgan brought its cost target all the way down to $10 a share, saying the firm at This particular point assumes “weaker results at power along with some franchise value impact” for GE.
Flannery said during GE’s second-quarter earnings in June in which he had “essentially” completed the “target of $20 billion of dispositions” he promised.