UBS bumped its rating of General Electric shares to buy from neutral on Wednesday, saying the battered stock is primed for a turnaround with CEO Larry Culp at the helm.

GE shares fell 0.8 percent in trading a day after falling below $10 for the first time since 2009. The stock initially rose as much as 1.2 percent in premarket trading after the UBS report.

"We think peak uncertainty has been reached and expect forward corporate event catalysts and portfolio moves to improve visibility and to strengthen the balance sheet," UBS analyst Steven Winoker said in a note. "Let's be clear. Larry Culp is key to our upgrade."

Culp's ability to lead GE is Winoker's No. 1 conviction for upgrading the stock.

"Despite all the differences from the experience with Danaher, we think Culp will succeed in improving the businesses, optimizing capital allocation and cleaning up whatever needs to be cleaned up over time," Winoker said.