GE Aerospace drop on Safran outlook an opportunity, says Bernstein

Bernstein views the selloff this week in shares of GE Aerospace (GE) on Safran’s initial guidance for 2025 and broad expectations for 2028 as a buying opportunity. Safran’s 2025 guidance was below consensus on revenues, earnings and free cash flow, and the read-across to GE Aerospace is important because of the GE/ Safran joint venture, which produces the Leap and CFM56 engines, the analyst tells investors in a research note. However, the firm sees the 5% fall in GE shares as the result of the soft Safran guide in the context of high expectations with GE shares up 80% this year as an opportunity. It saw nothing in the Safran’s capital markets day to change the fundamentals for GE. Bernstein keeps an Outperform rating on GE with a $225 price target