Bernstein analyst Douglas Harned raised the firm’s price target on GE Aerospace (GE) to $225 from $201 and keeps an Outperform rating on the shares ahead of quarterly results. The firm says the lead question for GE in Q3 will be around OE production of LEAP engines after a shortfall in deliveries to Airbus (EADSY) in Q2. The reason for the shortfall was attributed primarily to a shortage of high-pressure turbine blades. Bernstein expects deliveries in Q3 will likely be down year-over-year as blade production recovers. For GE, this shortfall may result in lower revenues. But, at the same time it will increase margins and extend the lives of legacy CFM56-powered airplanes, which have a highly profitable aftermarket, the firm adds.
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