Cramer: Don't Rush To Buy GE After Analyst Upgrades

One of the Street's more notable General Electric Company GE bears, JPMorgan's Steve Tusa, parted ways with his multiyear bearish stance on the stock last week.

A few days later, Vertical Research Partners' Jeffrey Sprague turned bullish on the stock for the first time in more than a decade. But investors shouldn't conclude this is a "green light" to take a position in the stock, according to CNBC's Jim Cramer.

What Happened

GE stock rightfully rebounded from its multiyear low of $6.66 in reaction to Tusa's upgrade note, Cramer said during his daily 'Mad Money' show Thursday. Yet Tusa's upgrade note didn't include a price target lift, and the analyst cautioned that earnings estimates need to be revised lower moving forward.

The upgrade is strictly due the stock falling so much it reached "the point where [Tusa] believes it has a reasonable valuation," Cramer said.

Why It's Important

GE's stock is not far removed from its multiyear lows, and the The Wall Street Journal wrote an "epic eulogy" for the business, Cramer said, referencing the WSJ article titled "GE Powered the American Century — Then It Burned Out."

On the other hand, this is the kind of reporting that "often marks the bottom" for a stock," the CNBC host said.