Citi has increased its price target for GE Aerospace (GE, Financial) from $296 to $309, maintaining a Buy rating on the shares. This adjustment follows a notable performance in the second quarter where the company surpassed expectations and adjusted its 2025 projections upwards based on favorable order trends. The firm anticipates further strong results for GE Aerospace in the future.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for GE Aerospace (GE, Financial) is $262.81 with a high estimate of $300.00 and a low estimate of $196.11. The average target implies an upside of 0.97% from the current price of $260.28. More detailed estimate data can be found on the GE Aerospace (GE) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, GE Aerospace's (GE, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for GE Aerospace (GE, Financial) in one year is $147.69, suggesting a downside of 43.26% from the current price of $260.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the GE Aerospace (GE) Summary page.
GE Key Business Developments
Release Date: July 17, 2025
- Revenue: Over $10 billion, up 23% year-over-year.
- Commercial Engines & Services (CES) Revenue: Up 30% year-over-year.
- Defense & Propulsion Technologies (DPT) Revenue: Up 7% year-over-year.
- Profit: $2.3 billion, up 23% year-over-year.
- Margins: Reached 23%.
- Earnings Per Share (EPS): $1.66, up 38% year-over-year.
- Free Cash Flow: $2.1 billion, nearly doubling from the previous year.
- Orders: Up 27% year-over-year.
- CES Service Revenue: Up 29% year-over-year.
- CES Equipment Revenue: Up 35% year-over-year.
- DPT Profit: Approximately $360 million, up 5% year-over-year.
- 2025 Revenue Growth Guidance: Mid-teens, up from low double digits.
- 2025 Operating Profit Guidance: $8.2 billion to $8.5 billion.
- 2025 Free Cash Flow Guidance: $6.5 billion to $6.9 billion.
- 2028 Profit Outlook: $11.5 billion.
- 2028 Free Cash Flow Outlook: Approximately $8.5 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GE Aerospace (GE, Financial) reported a strong second quarter with a 23% increase in revenue, driven by a 30% growth in Commercial Engines & Services (CES) and a 7% increase in Defense & Propulsion Technologies (DPT).
- The company raised its 2025 guidance, expecting mid-teens revenue growth, driven by improved services outlook and material availability.
- GE Aerospace (GE) has a robust backlog of over $175 billion, with commercial services backlog exceeding $140 billion, supporting long-term growth.
- The company is making significant advancements in technology, including AI-enabled tools for engine inspections and the development of the CFM RISE program, which promises a 20% reduction in fuel burn.
- GE Aerospace (GE) is expanding its capacity, with plans to grow internal and external capacity by approximately 40% by the end of the decade, supported by a $1 billion investment in MRO and component repair facilities.
Negative Points
- The company faces ongoing supply chain challenges, with material delivery environments expected to remain tight, contributing to higher inflationary pressures.
- GE Aerospace (GE) anticipates a couple of hundred million dollars of profit headwind in 2025 due to initial shipments of the GE9X engine, which have the highest losses.
- There is uncertainty in the macroeconomic environment, which could impact the company's expectations for spare part sales in the second half of the year.
- The company expects retirements of CFM56 engines to increase, which could affect shop visit volumes and revenue.
- Despite improvements, the company acknowledges that it still has more work to do to improve turnaround times for certain engine platforms.
