GE - Longtime GE bear stays negative sees 2023 earnings 30% below Street view

J.P. Morgan analyst Stephen Tusa has taken a fresh look at General Electric ( NYSE: GE ), and the longtime bear on the stock still does not like what he sees , according to Al Root at Barron's .

"After material [valuation] multiple contraction and weak stock performance, we believe it's too early to step in, given a few small shoes to drop that add up to one big one: forward estimates," Tusa wrote on Thursday, reiterating his Neutral rating and $50 price target - the lowest PT among all Wall Street analysts, according to Root.

Tusa's FY 2023 earnings estimate for GE ( GE ) is $3.30/share, well below the Wall Street consensus of $4.87, which the analyst says fails to fully reflect the risk of a recession.

A recession would pressure sales in GE's power business as well as the business jet aftermarket, which could lead to no sales growth at all in 2023, Tusa said.

Tusa also reinstated a Neutral rating for Emerson Electric ( EMR ) with an $80 PT, saying new orders are peaking, which not only makes profit margin expansion difficult but signals top-line sales weakness ahead.

Meanwhile, Tusa downgraded Otis Worldwide to Neutral, viewing the global elevator industry as "fundamentally attractive" but the current valuation suggests any upside already is priced in .

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