TD upgrades GE Aerospace to Buy on visibility amid Boeing problems

TD Cowen upgraded GE Aerospace (GE) to Buy from Hold with a price target of $180, up from $175. The firm says over 50% of the company’s sales and 75% of profits come from the commercial aerospace aftermarket following the spinoff, the highest in its coverage. The analyst remains bullish on the commercial aftermarket, especially in light of Boeing’s production problems. Boeing’s 737 Max production challenges directly accrue to GE’s near-term benefit, as it increases spares demand for older engines, says the firm. TD cites “extended visibility” for the upgrade of GE Aerospace.