GE Aerospace Stock Price Targets

Comprehensive analysis of short, mid, and long-term price targets for GE Aerospace (GE).

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Give me a comprehensive price target analysis for GE Aerospace (GE).

Ge Aerospace (GE) – Comprehensive Analysis (as of 2025-10-10)

Note on chart visuals

  • Horizontal trendlines drawn for the three price targets on the GE chart (ticker: GE)
    • Low Target: 266.00 (blue)
    • Median Target: 314.00 (orange)
    • High Target: 350.00 (red)
  • Each line is extended 30 days into the future from 2025-10-10 (to 2025-11-09)
  1. Executive Summary
  • Investment thesis: GE Aerospace remains a financially solid, high-quality aerospace business within GE, with robust cash generation, healthy margins, and defensible market position in both civil and defense aviation. The stock trades around a premium multiple, reflecting strong profitability and growth prospects in a rising air-transport and defense environment, though forward multiples remain elevated given headline capex and cyclicality risks.
  • Price outlook: Near-term upside modest-to-broad depending on sentiment around defense and civil aviation cycles. The market appears to price in continued EPS growth and margin discipline, but the high forward P/E implies optionality is needed for meaningful upside beyond the current trading range.
  1. Fundamental Analysis

Key valuation and health metrics (selected)

  • Current price: 299.35
  • Market cap: $317.44B
  • Enterprise value: $329.59B
  • Trailing P/E: 42.64
  • Forward P/E: 57.13
  • Price to Book: 16.59
  • Return on Equity (ROE): 39.57%
  • Return on Assets (ROA): 4.61%
  • Profit margins: 18.64%
  • Gross margins: 31.9%
  • Operating margins: 20.90%
  • Debt to equity: 103.37%
  • Total cash: $11.46B
  • Total debt: $19.999B
  • Dividend yield: 0.48%
  • Five-year avg dividend yield: 0.38%
  • Beta: 1.49

Table: Selected Valuation & Balance Sheet Metrics

  • Note: All figures in USD unless stated otherwise.
MetricValue
Current price299.35
Market cap317,442,523,136
Enterprise value329,594,535,936
Trailing P/E42.64
Forward P/E57.13
P/B16.59
ROE39.57%
ROA4.61%
Profit margin18.64%
Gross margin31.9%
Operating margin20.90%
Debt/Equity103.37%
Total cash11.46B
Total debt19.999B
Dividend yield0.48%
5-yr avg. dividend yield0.38%
Beta1.49
  1. Earnings Analysis

Recent Earnings Summary (selected quarters)

  • Quarter End 2025-06-30
    • Revenue: 11.022B
    • Net income (continuing ops): 2.008B
    • Diluted EPS: 1.89
    • Basic EPS: 1.91
    • Normalized income: 2.043B
    • EBITDA: 2.858B
    • Operating income: 2.099B
  • Quarter End 2025-03-31
    • Revenue: 9.934B
    • Net income (continuing ops): 1.978B
    • Diluted EPS: 1.83
    • Basic EPS: 1.85
    • Normalized income: 2.001B
    • EBITDA: 2.754B
    • Operating income: 2.003B
  • Quarter End 2024-12-31
    • Revenue: 10.811B
    • Net income (continuing ops): 1.899B
    • Diluted EPS: 1.75
    • Basic EPS: 1.76
    • Normalized income: 2.447B
    • EBITDA: 2.815B
    • Operating income: 2.515B
  • Quarter End 2024-09-30
    • Revenue: 9.842B
    • Net income (continuing ops): 1.852B
    • Diluted EPS: 1.70
    • Basic EPS: 1.71
  • Quarter End 2024-06-30
    • Revenue: 9.093B
    • Net income (continuing ops): 1.266B
    • Diluted EPS: 1.15
    • Basic EPS: 1.16

Notes on EPS trends and revisions (High level)

  • EPS Trend (recent trajectory)
    • Current quarter (0q): Diluted EPS 1.42228; q/q modest uptick vs prior period
    • +1q: 1.33539
    • 0y (TTM-ish): 5.90288
    • +1y: 6.98483
  • EPS Revisions (analyst sentiment)
    • 0q: Up revisions in 7 days (1), 30 days (1); no downgrades
    • +1q: Up (1), Up in 30d (1), Down in 30d (1), Down in 7d (1)
    • 0y: Up (1), Up in 30d (1), Down in 30d (1), Down in 7d (1)
    • +1y: Up (1), Up in 30d (1), Down in 30d (1), Down in 7d (1)
  • Interpretation: Mixed-to-moderate upward bias in revisions, but not overwhelmingly bullish. This aligns with a mature aerospace business where surprises are tempered by defense/civil cycle visibility.
  1. Technical Analysis

Current price action and trend context

  • Price: 299.35; price is above the 50-day moving average (approx. 282–283 region in the latest window), suggesting near-term momentum is constructive despite a recent dip in short-term momentum indicators.
  • 50-day moving average (MA): around 281.0–283.0 in recent data across late September–early October, implying a bullish tilt versus the MA baseline.
  • RSI (14) (recent window): Spiked into the 70s in late July–early Sept but has cooled; most recent RSI reading around 48.0 (as of 2025-10-09), signaling some short-term consolidation or a pullback, not extreme oversold.
  • MACD (12,26,9): Reading around mid-5s with the signal line in the low-6s; current MACD < Signal in the most recent date, indicating near-term softness despite a still-positive MACD level; overall trend remains constructive given the price above MA and a positive longer-term momentum backdrop.
  • Interpretation: The stock sits in a balanced zone after recent strength, with near-term momentum cooling but still above key trend supports. The new horizontal price-target lines (266, 314, 350) anchor potential resistance/support bands.
  1. Analyst Consensus & Price Targets

Current consensus snapshot

  • Number of analysts: 14
  • Target High: 350.00
  • Target Low: 266.00
  • Target Median: 314.00
  • Target Mean: 315.07

Valuation-relative context

  • Current price: 299.35
  • Upside vs. Low: -11.0% from 299.35 to 266 target
  • Upside vs. Median: +4.8% to 314 target
  • Upside vs. High: +16.8% to 350 target
  • Implied upside vs current: roughly 5–15% depending on which target is assumed in play over the next 3–12 months.
  1. Price Target Analysis (Short, Mid, Long-Term) Note: The three explicit price levels drawn on the chart are 266 (low), 314 (median), and 350 (high). Below is a forward-looking view using these baselines plus a forward-looking longer-term perspective.

Short-Term Target (3 months)

  • Target price: 314 (median)
  • Rationale: Near-term consensus center, with continued earnings quality and stable margins supporting a modest upgrade path; stock currently trades slightly above 50-day MA and above current consensus price, implying a test of resistance near the 314 level could occur but a break above is plausible if the fundamentals stay firm.
  • Key drivers: Stable demand in Civil/Aerospace, consistent defense spending tailwinds, ongoing cost control, and historically solid cash generation.

Mid-Term Target (12 months)

  • Target price: 350 (high)
  • Rationale: Upside potential from continued earnings resilience, potential multiple expansion as visibility improves on cash flow generation, and ongoing defense budgets supporting GE Aerospace’ backlog and pricing power.
  • Key drivers: Defense procurement cycles, commercial air travel tailwinds, aerospace services revenue growth, and potential strategic portfolio actions/ capital allocation enhancing shareholder value.

Long-Term Target (3+ years)

  • Target price (investor thesis): Around 380–420 range (analysis-supported)
  • Rationale: If GE Aerospace sustains margin improvement, achieves normalized free cash flow growth, and the broader aerospace market enters a favorable cycle (e.g., accelerating air travel demand, durable defense spending), the stock could command a higher earnings multiple. Also consider potential improved capital allocation (buybacks, debt management, strategic partnerships) supporting long-run ROE and per-share value.
  • Key drivers: Structural margin expansion, continued backlog conversion, secular growth in aerospace MRO/services, and potential multiple-expansion catalysts as the segment becomes a larger, more profitable portion of GE’s overall business.

Table: Price Target Summary

TimeframeTargetRationale / Key Drivers
Short-Term (3 months)314Center of consensus; near-term upside with earnings stability and momentum; test of nearby resistance.
Mid-Term (12 months)350Potential multiple expansion on cash flow strength, defense tailwinds, and revenue mix improvements.
Long-Term (3+ years)380–420Structural margin/CFO growth, services backlog conversion, capex normalization, capital allocation optimizations.
  1. Key Risks & Opportunities

Key Risks

  • Macro cyclicality in aerospace and defense budgets; protracted downturns could pressure most segments.
  • High forward P/E multiple leaves limited downside cushion if earnings miss occurs.
  • Debt maturity and leverage (Debt/Equity around 1.03x) could become a constraint if interest rates rise or cash flow temporarily deteriorates.
  • Competitive pressures and supply chain risks in engines/components could impact margin stability.
  • Execution risk in large defense programs and potential delays.

Key Opportunities

  • Defense demand resilience and potential growth from next-gen propulsion and aircraft programs.
  • Margin improvement opportunities from cost controls, efficiency programs, and services mix expansion.
  • Strong free cash flow generation enabling deleveraging and shareholder-friendly actions (buybacks/dividends).
  • Potential for multiple expansion as forward earnings visibility improves and risk premium stabilizes.
  1. Investment Recommendation
  • Rating: Hold to Moderate Buy
  • Rationale: GE Aerospace trades near the median analyst target with a constructive fundamental backdrop and a favorable technical setup (price above the 50-day MA, solid margins, and improving cash flow). While the forward P/E remains elevated, the earnings trajectory and defense/civil aviation tailwinds support potential upside. The stock offers limited downside protection given a low to moderate risk of material mispricing, but upside is contingent on macro stability and execution.
  • Expected return potential (12–24 months): Approximately 5–15% potential upside against the current price, with upside skew if the high-target case of 350 materializes and if long-term catalysts unlock additional multiple expansion.
  1. Additional earnings, EPS, revisions, and technical context (reference notes)
  • EPS Trend (latest data)
    • Current quarter (0q): Diluted EPS 1.42228
    • +1q: 1.33539
    • 0y: 5.90288
    • +1y: 6.98483
  • EPS Revisions
    • Up last 7 days: 1 instance (0q), 1 (plus 1q), 1 (0y), 1 (plus 1y)
    • Up last 30 days: 1 (0q), 1 (plus 1q), 1 (0y), 1 (plus 1y)
    • Down last 7/30 days: 0 for 0q; 1 for +1q; 1 for 0y; 1 for +1y
  • Technical snapshot (last 60 days)
    • 50-day MA: around the low-to-mid 280s as of Oct 2025
    • RSI (14): previously in the 60s–70s range, most recent reading around 48.0 (2025-10-09), signaling a short-term pullback
    • MACD (12,26,9): positive but near-signal; MACD line around 5.5 with the signal around 6.2 on the latest date, indicating modest near-term softness even as momentum remains positive
  • Analyst consensus & targets
    • 14 analysts, target high 350, median 314, mean ~315
    • Price today around 299.35, implying mid-single-digit upside to median and low-to-mid-teens to high target levels

Important caveats

  • All data points are used to inform a forward-looking perspective. Valuation is high relative to many peers; upside hinges on continued earnings resilience, margin expansion, and favorable aerospace/defense cycles.
  • Monte Carlo-type scenario planning would consider upside for defense orders, potential service-revenue growth, and efficiency gains, as well as downside if travel demand worsens or supply chain frictions intensify.

If you’d like, I can add a calibrated sensitivity analysis (e.g., EPS growth scenarios, revenue-mix shifts, or a downside scenario) to gauge how the price targets might shift under different macro and company-specific conditions.

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