Ronald Epstein, an analyst from Bank of America Securities, reiterated the Buy rating on GE Aerospace (GE – Research Report). The associated price target was raised to $230.00.
Ronald Epstein has given his Buy rating due to a combination of factors that highlight GE Aerospace’s resilience and strategic positioning in a challenging market environment. GE’s proactive approach to mitigating tariff impacts, coupled with its strong market positioning and operational capabilities, has allowed it to maintain its growth outlook despite a $500 million cost headwind from tariffs. This confidence in GE’s ability to achieve low-double-digit growth by 2025 is further supported by the company’s effective use of tools like free trade zones, pricing strategies, and operational improvements.
Additionally, GE’s strong aftermarket performance, with a significant portion of spare parts orders already secured, positions it well to handle potential margin pressures. While there are risks related to travel demand and macroeconomic factors, GE is seen as more capable than its peers in managing these challenges. Moreover, the recent milestone in the XA102 engine development and a substantial award for the NGAP program provide additional catalysts for future growth, reinforcing the Buy rating.
According to TipRanks, Epstein is a 5-star analyst with an average return of 12.0% and a 59.19% success rate. Epstein covers the Industrials sector, focusing on stocks such as Boeing, Rocket Lab USA, and Aercap Holdings.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $254.00 price target.