On Tuesday, Goldman Sachs resumed coverage on GE Aerospace (NYSE: GE) stock, assigning a Buy rating and setting a price target of $190.00. The firm highlighted GE's strong position within the aerospace engine sector, emphasizing the company's significant market share in what is described as an 'oligopoly market structure.'
The analyst pointed to the advantageous long-term cash flow of aerospace engines, noting their recurring revenue streams and ability to exert pricing power. Particular attention was given to the LEAP engine, which is expected to outpace all others in the market by a considerable margin.
The medium-term outlook for GE Aerospace appears good, with predictions for a strong performance in both aftermarket units and pricing. The firm's analysis suggests that GE Aerospace is well-positioned to capitalize on market conditions and is expected to maintain its leading role in the aerospace engine industry.
The new price target of $190.00 reflects a positive forecast for the company's stock, indicating confidence in GE Aerospace's future financial performance. This target is set with a 12-month perspective in mind, suggesting that investors could see substantial gains within a year if the company performs as Goldman Sachs anticipates.
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