GE Aerospace Outperform maintained by RBC Capital, PT raised to $300.

GE Aerospace Outperform maintained by RBC Capital, PT raised to $300.

RBC Capital has increased its price target for GE Aerospace (GE, Financial) from $275 to $300, maintaining an Outperform rating on the stock. This optimism is rooted in the company's strong position in the engine aftermarket sector, which is expected to drive significant growth between 2025 and 2028 [1].

The average one-year price target for GE Aerospace, as per 15 analysts, is $262.81, with a high estimate of $300.00 and a low estimate of $196.11. This average target implies an upside of 0.97% from the current price of $260.28 [1]. The consensus recommendation from 20 brokerage firms is currently 1.9, indicating an "Outperform" status [1].

GuruFocus estimates the GF Value for GE Aerospace in one year to be $147.69, suggesting a downside of 43.26% from the current price of $260.28. The GF Value is calculated based on historical multiples, past business growth, and future performance estimates [1].

In the second quarter of 2025, GE Aerospace reported a 23% increase in revenue, driven by a 30% growth in Commercial Engines & Services (CES) and a 7% increase in Defense & Propulsion Technologies (DPT). The company's 2025 guidance expects mid-teens revenue growth, supported by improved services outlook and material availability [1].

The company's robust backlog of over $175 billion, with a commercial services backlog exceeding $140 billion, supports long-term growth. GE Aerospace is also making significant technological advancements, including AI-enabled tools for engine inspections and the development of the CFM RISE program, which promises a 20% reduction in fuel burn [1].

However, the company faces ongoing supply chain challenges and material delivery environments expected to remain tight, contributing to higher inflationary pressures. Additionally, initial shipments of the GE9X engine may result in a couple of hundred million dollars of profit headwind in 2025 [1].

Despite these challenges, GE Aerospace is expanding its capacity, with plans to grow internal and external capacity by approximately 40% by the end of the decade, supported by a $1 billion investment in MRO and component repair facilities [1].

References:
[1] https://www.gurufocus.com/news/2987118/rbc-capital-optimistic-about-ge-ge-with-raised-price-target-ge-stock-news