Key Takeaways
- GE Aerospace reports earnings Tuesday morning amid an uncertain time for the aerospace industry with Boeing workers on strike.
- GE shares have surged since General Electric completed its split into three publicly traded companies.
- Analysts are bullish on GE Aerospace's outlook, with several raising their price targets for GE stock in recent weeks.
GE Aerospace (GE) will report earnings for the third quarter Tuesday morning, at a time when the aerospace industry faces some uncertainty with Boeing (BA) workers 澳洲幸运5官方开奖结果体彩网:on strike.
Analysts expect GE Aerospace's quarterly revenue to rise to $9.35 billion from $8.41 billion a year ago, when GE Aerospace was still a part of the General Electric conglomerate. The former GE division split from the energy-focused GE Vernova (GEV) 澳洲幸运5官方开奖结果体彩网:earlier this year, while GE HealthCare (GEHC) was spun off last year.
Shares of GE Aerospace have surged over 40% since the April 2 split from GE Vernova. Analysts expect the stock could rise further, with all of the eight analysts tracked by Visible Alpha holding "buy" or equivalent rating and an average price target of $210.38, implying about 9% upside from Thursday's intraday price of $192.84.
Boeing Strike's Impact a 'Key Question' For GE Aerospace
Bernstein analysts, recently raising their price target to $225 from $201, wrote GE Aerospace could be "well-positioned for the short, medium, and long-term" because of its combination of new engine sales and its "huge installed base" of existing engines, "which drives a powerful, profitable aftermarket."
However, GE Aerospace faces a "key question" in this quarter's earnings report, as the analysts said investors will be looking for details on how much of an impact the ongoing Boeing strike will have on production, which could impact GE's engine sales.
Deutsche Bank analysts also raised their price target to $235 from $212 earlier this month, and said GE Aerospace remains one of their "top ideas" in the aerospace sector.