On Thursday, Jefferies analyst Sheila Kahyaoglu increased the price target for GE Aerospace (NYSE: GE) shares to $260 from the previous target of $240. The firm maintained a Buy rating on the stock, aligning with the strong analyst consensus of 1.4 (Strong Buy). Trading near its 52-week high of $223.55, GE has delivered impressive returns with a 34% gain year-to-date. This adjustment comes after a comprehensive tour of GE Celma in Brazil, which included insights from key company executives.
During the visit to GE’s facility, the analyst was accompanied by CFO Rahul Ghai, VP of Assembly, Test, & MRO Farah Borges, and Head of IR Blaire Shoor. The key takeaways from the tour included an understanding that GE Celma is responsible for 25% of GE’s engine overhauls, with a current output of 600 per year. There are plans to expand this figure to over 1,000 per year as the LEAP engine buildout comes online in 2026.
The analyst also noted that GE Celma is in the middle stages of its lean journey. However, it’s already seen as the "crown jewel" of turnaround times (TATs) with a goal to reduce the engine overhaul time from the current 90+ days to 60 days within three years. This efficiency drive is a significant aspect of GE Aerospace’s operational strategy.
Additionally, the tour highlighted the cost benefits of in-house repair capabilities, which can save approximately 50% compared to the cost of new materials. This capability is a key competitive advantage for GE Aerospace in managing and reducing maintenance expenses. According to InvestingPro analysis, GE currently appears overvalued compared to its Fair Value, though 12 analysts have recently revised their earnings estimates upward. For deeper insights into GE’s valuation and 14 additional exclusive ProTips, consider exploring the comprehensive Pro Research Report.
Finally, the analyst projected a notable increase in engine removals in 2025 and 2026, which is expected to contribute to already full capacity at the maintenance facilities. This forecasted uptick in demand for engine overhauls aligns with the company’s expansion plans and reinforces the positive outlook for GE Aerospace’s future operations and financial performance. With a market capitalization of $238 billion, GE remains a dominant player in the aerospace industry, maintaining strong profitability metrics and consistent dividend payments.
In other recent news, GE Aerospace has secured a monumental deal with Qatar Airways, involving the purchase of over 400 engines, including 60 GE9X and 260 GEnx units. This agreement, announced during a meeting in Doha, is the largest widebody engine order in GE Aerospace’s history. The deal also includes service agreements for maintenance, repair, and overhaul, enhancing Qatar Airways’ fleet efficiency. Additionally, GE Aerospace has been involved in a significant transaction as part of a broader $243.5 billion commercial agreement between the United States and Qatar, which includes the sale of Boeing (NYSE:BA) aircraft to Qatar Airways. This transaction represents Boeing’s largest-ever widebody order, anticipated to support 154,000 U.S. jobs annually.
Analyst firms have shown confidence in GE Aerospace’s market performance, with BofA Securities raising its price target to $230 and maintaining a Buy rating. Similarly, Bernstein increased its price target to $254, citing strong first-quarter earnings and the company’s ability to manage tariff costs. TD Cowen also reaffirmed a $200 price target following GE Aerospace’s robust Q1 performance and successful navigation of early challenges. The company’s aftermarket sales rose by 17% year-over-year, indicating strong demand and pricing power. These developments underscore GE Aerospace’s operational strength and strategic positioning in the aerospace sector.
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