General Electric (GE, $7.28) Surges as JPMorgan (JPM, $101.11) Alters its Rating

Shares of the crisis-stricken manufacturer, General Electric, surged more than 8% after the JPMorgan analyst Steve Tusa finally raised his rating to Hold from Sell.

Steve Tusa, who has had a sell rating on GE for more than two years now, finally upgraded the shares citing the “known unknowns” risks weighing on the balance sheet are better understood now.

In a note to the clients, he said that GE can pull off a recovery without another major stumble. He further added that the threat of further deterioration in GE’s liabilities is at least partially discounted now, and there is a possibility that the company can execute its way through an elongated workout that limits near-term downside.

The unexpectedly upbeat sentiment resulted in the shares of GE soaring up as much as 12% in New York, its biggest intraday gain in a month. Another separate announcement from GE about reorganization of its digital business also buoyed the stock, which rose 10% to $7.38. After nearly 62% decline through this year, this sudden surge came as a welcome news for GE’s investors.

GE’s bonds also recorded their highest growth in a month, after the bonds note due 2035 rose 4.418% more than 1 cent on the dollar to 84.768 cents in early trading.