Deutsche Bank Cuts General Electric Price Target To $18

Deutsche Bank analyst John Inch cut his price target for General Electric shares to $18 from $21 and reiterates a Sell rating on the name.

Following the “substantial” Q3 miss and 2017 guidance cut, Inch lowered his Q4 earnings per share estimate to 42c from 62c and 2018 estimate to $1.05 from $1.55. The analyst notes his 2018 estimates do not subtract 17c of forecast 2018 pension accounting.

It will take years to work through GE’s “operational and cultural challenges and establish a firm foundation from which the company can grow on a sustained basis,” Inch tells investors in a research note. The stock in early trading is down 33c to $20.46.