JPMorgan's Tusa calls GE Renewables an 'impaired' business
Despite investor focus on Power, as General Electric's portfolio is taken apart, its Renewables unit is an important $10B of revenues that is largely overlooked or assumed to be set for recovery from losses in the years ahead, as per management guidance calling for improvement in 2021, JPMorgan analyst Stephen Tusa tells investors in a research note. However, Renewables is "another business in this portfolio with evidence of impairment," the analyst contends in a note titled "'Gone With The Wind': Renewables Long Term Outlook Is Impaired." Tusa says his meetings with two of the competing manufacturers support his view that GE's Renewables business will likely struggle to return from losses, with headwinds both on the macro and the micro sides. He keeps an Underweight rating on shares of General Electric.