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Investing.com - TD Cowen has raised its price target on GE Aerospace (NYSE:GE) to $300.00 from $275.00 while maintaining a Buy rating following the company’s earnings report. The new target aligns with broader analyst optimism, as InvestingPro data shows six analysts have recently revised their earnings estimates upward. The stock has demonstrated remarkable strength, delivering a 71% return over the past year.
The firm increased its price target after GE hiked its 2028 EBIT target to $11.5 billion from the previous $10 billion, and raised its 2025 EBIT midpoint to $8.35 billion from $8 billion, driven by stronger aerospace aftermarket performance. According to InvestingPro analysis, GE currently trades at a P/E ratio of 41x, suggesting investors are pricing in significant growth expectations. Get deeper insights into GE’s valuation metrics and growth potential with InvestingPro’s comprehensive research report, available along with 15+ additional ProTips.
TD Cowen noted the 2025 guidance may have upside potential as it implies a steep second-half decline of 14% at the midpoint versus the first half, which isn’t fully explained by the rising original equipment engine mix. The second-half services guide of 15% growth versus the first half’s 23% may also have upside.
The 2028 outlook assumes double-digit percentage services sales compound annual growth rate, supported by over 10% narrowbody aftermarket CAGR and high single-digit percentage widebody aftermarket CAGR. CFM56 shop visits are expected to rise gradually from 2,300 in 2025, peak in 2027, and decline in 2028.
LEAP aftermarket profitability is projected to rise to near the services average margin by 2028 (over 40%) given better spares mix, volume leverage, and rising mix of higher-priced long-term service agreements. GE reported that aerospace aftermarket pricing and demand have remained strong despite tariffs and softer year-to-date North American airline maintenance trends.
In other recent news, General Electric released its second-quarter 2025 financial results through its investor relations website. Although the company did not disclose specific financial performance details in the SEC filing, Bernstein has reiterated an Outperform rating on GE Aerospace with a price target of $254.00, ahead of the company’s earnings report. The firm expects positive trends in spare parts and maintenance activities, which are anticipated to be significant earnings drivers. Meanwhile, the National Transportation Safety Board issued an urgent safety alert regarding potential smoke hazards in aircraft equipped with CFM International LEAP-1B engines, used on Boeing (NYSE:BA) 737 Max jets, following incidents involving smoke in the cockpit. Boeing has updated flight manuals with new procedures to address these issues, and further recommendations were made to aviation regulators worldwide. Elsewhere, Watts Water Technologies (NYSE:WTS) announced the appointment of Ryan Lada as its new Chief Financial Officer, effective July 28, 2025. Lada transitions from The AZEK Company, bringing extensive financial leadership experience from previous roles at several companies, including General Electric. Air India completed its inspection of Boeing 787 fuel control switches, reporting no issues, as per an official source.
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