A wind turbine used for training and research stands outside the General Electric Co. (GE) energy plant in Greenville, South Carolina.










Luke Sharrett | Bloomberg | Getty Images

A wind turbine used for training and research stands outside the General Electric Co. (GE) energy plant in Greenville, South Carolina.

General Electric CEO Larry Culp may be more optimistic about the company’s future than ever before but a top Wall Street analyst is warning that GE’s turnaround hasn’t happened yet.

near term results will remain under pressure. But Culp expects his company’s performance will “be significantly better” in 2020 and 2020, he said. GE shares rose more than 3 percent on Thursda

But Tusa was critical of Culp’s “myriad of promises” for the years ahead. Tusa said GE earnings and free cash flow are now at “officially the widest gap we have no seen between consensus” and the company’s estimate.”

A turnaround for GE’s struggling power business is “based on growth in transactional services,” Tusa said, which has “never been done before.”

“Even worse is that if recession hits, stubbornly high leverage would raise the stakes versus back then when it looked like an over-valued stock,” Tusa added. “We struggle to understand the story.”

J.P. Morgan has a neutral rating and a $6 price target on GE stock.

— With reporting by Michael Bloom

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