[ad_1]
GE Aerospace‘s (NYSE: GE) shares were up by 6% at 11:30 a.m. ET today. The company, formerly General Electric, rose after a few updates from heavyweight financial firms.
GE Aerospace analyst updates
Wall Street analysts will likely be busy with GE Aerospace, as it’s no longer part of a multi-industry industrial company but now a stand-alone aerospace and defense company. That often means aerospace analysts will cover the stock rather than industrial experts.
As such, a Barclays analyst assumed coverage of the company with a $185 price target and an overweight rating.
In addition, Deutsche Bank adjusted for the spinoff of GE Vernova (NYSE: GEV) and lowered the price target for GE Aerospace from $210 to $190. However, to put that new target into context, GE Vernova trades at $140, and General Electric shareholders received one share in GE Vernova for every four they held in General Electric, so the GE Vernova is equivalent to around $35 in “old GE” stock.
Moreover, the $190 price target implies a 31% premium to the current price. Whichever way you look at it, Wall Street analysts are bullish on GE Aerospace’s prospects.
A bright outlook
They have good reason to do so because the commercial aerospace recovery continues to build, and GE’s joint venture with Safran, CFM International, continues to ramp up production of its LEAP engines aggressively. The LEAP engine is used on the narrow-body workhorses of the skies: the Airbus A320 neo family, the Boeing 737 MAX, and the Comac C919. As such, investors can expect decades of lucrative aftermarket revenue ahead.
Moreover, given the need to inspect RTX‘s (Pratt & Whitney) geared turbofan engines (an option on the Airbus A320 neo family) for potential contamination, GE Aerospace can grab market share from RTX. It speaks to a bright future for the best-run company in the large-cap aerospace sector.
Should you invest $1,000 in General Electric right now?
Before you buy stock in General Electric, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and General Electric wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of April 1, 2024
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends RTX. The Motley Fool has a disclosure policy.
Why Shares in GE Aerospace Surged Higher Today was originally published by The Motley Fool
[ad_2]