J.P. Morgan warned General Electric shareholders that the industrial conglomerate’s turnaround strategy will not lead to a higher stock price.
The firm reiterated its underweight rating for GE shares, citing the company’s high valuation.
Last week the company announced plans to spin off its health-care unit and separate its stake in oil services company Baker Hughes over the next two to three years. GE said it will focus its operations on the aviation, power and renewable energy businesses. Its shares rose 7.8 percent on the day of the announcement Tuesday.