Positive Outlook for GE Aerospace Amidst Growth in Services and Strong Market Position

Sheila Kahyaoglu, an analyst from Jefferies, maintained the Buy rating on GE Aerospace (GE – Research Report). The associated price target remains the same with $260.00.

Sheila Kahyaoglu’s rating is based on several promising developments within GE Aerospace. The company is experiencing growth in its services sector, with significant investments in maintenance, repair, and overhaul (MRO) capabilities, which are expected to enhance margins and visibility. Additionally, the production of the GE9X engines is progressing well, with units being prepared for testing and alignment with Boeing’s 777X timeline, indicating a strong future demand.
Furthermore, GE Aerospace has secured substantial orders from the Middle East, including a significant number of engines for major airlines like Qatar Airways and Etihad, which underscores the company’s robust market position. The completion of endurance testing for the CFM RISE compact engine core also highlights GE’s technological advancements. Despite some setbacks, such as the US Army’s decision not to procure the T901 engine, the overall outlook for GE Aerospace remains positive, supporting the Buy rating.