General Electric (GE) - Get Report shares slumped Thursday after JPMorgan analysts cut their price target on the struggling conglomerate amid concerns that a key gas turbine launch would hit the group's earnings.

Lead analyst Stephen Tusa, who has an Underweight rating on the stock, lowered this price target from $11 to $10 a share as he reiterated concerns for the company's power division. Tusa said that checks on two initial U.S. installations revealed failures of the first stage blade of GE's H-frame gas turbine, and lowered his 2019 EPS from $0.80 cents a share to $0.75 cents a share (against a Street consensus $1.04) and to $0.82 from $0.92 cents a share in 2020.

"The impact on 'asset value" from a failure at GE's U.S. H-frame launch customer, which tough to estimate, represents a negative development for a company that has little wiggle room for more "shoes to drop", counting on V-shape recoveries in long cycle businesses to reduce leverage that is already well above levels that support the standing rating," Tusa wrote.

"While the debate can rage around the structural versus cyclical nature of the power industry downturn is as bad as it seems, we believe there should be no longer any doubt that GE Power has company-specific issues," Tusa added "Not only due to the decline in the profit pool from its large installed base of services, but now around the H-frame technology."

GE shares fell 3.2% from their Wednesday in the opening 30 minutes of trading to change hands at $12.44, a move that extends the stock's year-to-date decline past 28.6%.

Late last month, analysts at JPMorgan noted that "increased competition and lower demand for turbines and power plants" were creating a "prisoner's dilemma" for GE, where the company either "walks from business, turning up the heat on the melting ice cube, or cuts price to maintain the installed base, slowing the speed of the secular decline, while they figure out a strategy forward."

Credit rating giant Moody's has been monitoring GE's struggling power division for several months, noting in late April that GE's rating could be downgraded if "Moody's expects that revenues in the Power segment will be subject to further declines beyond 2019."

"The market continues to be difficult with softness in orders putting pressure on our cash flow and working capital," CEO John Flannery told investors on July 20. "The team continues to focus on rightsizing footprint, reducing base cost, improving quality, and maximizing value of our installed base. This transformation is taking place in the context of a very dynamic macro environment."

GE, which was dropped from the Dow Jones Industrial Average I:DJI by S&P Dow Jones Indices in favor of Walgreens Boots Alliance Inc (WBA) - Get Report , has been attempting to streamline its myriad businesses under Flannery's leadership for several months, announcing plans in late June to spin off its healthcare division and sell its stake in oil services group Baker Hughes (BHGE) - Get Report

GE said the plans, which follow its ongoing strategic review, will mark a shift in focus towards its power, aviation and renewable-energy businesses and create "a simpler, stronger, leading high-tech Industrial company."