F-35 re-engining an underappreciated opportunity for GE, says BofA

Noting that it has been found that Lockheed Martin’s (LMT) F-35’s F135 engine is less durable in maritime conditions and that this has become an increasing concern given growing tensions in the Pacific theater, BofA says that it seems "re-engine is back on the agenda" and contends that this is an underappreciated near-term opportunity for General Electric (GE), which is working on the competing XA100 to challenge Pratt & Whitney’s (RTX) F135 and its successor XA101 next-gen replacement. The firm reaffirms its Buy rating and $92 price target on GE as it sees multiple upcoming positive catalysts, including the potential engine selection.