On Friday, BofA Securities expressed a positive outlook on GE Aerospace (NYSE: GE) by increasing the firm’s price target on the stock to $230 from the previous $225. The aerospace giant has maintained its Buy rating according to the analysts, aligning with the broader Wall Street consensus. InvestingPro data shows analyst targets ranging from $185 to $261, with a strong buy consensus rating of 1.4.
The BofA Securities analyst, Ronald J. Epstein, highlighted GE Aerospace’s effective handling of market challenges, specifically its proactive tariff mitigation strategy. Despite the expectation of a $500 million cost headwind from tariffs, GE Aerospace has managed to maintain its financial guidance. The analyst’s note from April 22 indicated confidence in the company’s ability to achieve low-double-digit growth for the year 2025. This optimism is supported by the company’s strong performance, with revenue growth of 8.82% and a robust market capitalization of $210.41 billion.
The rationale behind the raised price target is based on a revised relative price to free cash flow (P/FCF) multiple of 1.5 times, increased from the prior 1.3 times, versus the S&P 500 based on the 2026 estimates, which remain unchanged. This adjustment reflects the analyst’s continued confidence in GE Aerospace’s market position and operational strength.
Epstein’s commentary underscored GE Aerospace’s resilience amidst market volatility, suggesting that the company stands as a reliable investment while other markets experience fluctuations. The analyst’s endorsement reiterates a strong investment stance on GE Aerospace shares, as the company navigates through the current economic landscape. According to InvestingPro, the company maintains a "GOOD" Financial Health Score, with nine analysts recently revising their earnings estimates upward. For deeper insights and additional ProTips, explore the comprehensive GE Aerospace Research Report on InvestingPro.
In other recent news, GE Aerospace reported impressive first-quarter financial results, surpassing analyst expectations. The company’s adjusted earnings per share reached $1.49, exceeding the consensus estimate of $1.27, while adjusted revenue increased by 11% year-over-year to $9.0 billion. This strong performance prompted RBC Capital Markets to maintain its Outperform rating with a $220 price target. UBS also raised its price target for GE Aerospace to $216, citing the company’s resilience in maintaining guidance despite challenges such as tariffs and slower global flight activity. In a similar vein, Bernstein increased its price target to $254, highlighting the robust Q1 performance and the potential for further upside if tariffs are not reinstated.
Analysts from TD Cowen reaffirmed a Buy rating with a $200 price target, noting the company’s successful navigation of early challenges and a 17% increase in aftermarket sales. GE Aerospace’s aftermarket sector remains a critical growth driver, with a significant 31% growth in Customer & Product Support services orders. CEO Larry Culp advocated for a return to a tariff-free aerospace industry, emphasizing the economic benefits of such a regime. The company’s strategic pricing and cost reduction measures have been instrumental in mitigating potential tariff impacts, contributing to a positive outlook from analysts.
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