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Investing.com - UBS raised its price target on GE Aerospace (NYSE:GE) to $321.00 from $300.00 on Friday, while maintaining a Buy rating on the stock. The aerospace giant, currently trading at $266.17 with a market capitalization of $282 billion, shows signs of being overvalued according to InvestingPro’s Fair Value model.
The firm cited strong end market demand, GE’s leading market position, and strong execution as key factors supporting the higher valuation. UBS noted that GE has years of visibility and conservative components within its guidance. This aligns with InvestingPro data showing impressive returns of 65% over the past year and 43% in the last six months, with revenue growth of 8.82%.
GE Aerospace raised both its 2025 and 2028 guidance, with UBS suggesting the revised assumptions still reflect the company’s typically conservative approach. The analyst firm pointed to several conservative elements in GE’s 2028 outlook, including low single-digit price increases and retirement rates for CFM56 engines at 3-4% compared to 1.5% this year.
UBS also highlighted GE’s flat Commercial Engine Services (CES) margin assumptions despite strong initial LEAP engine performance. The firm believes these conservative estimates leave room for potential upside.
The investment bank expects GE Aerospace’s earnings to compound at 20% with potential upside risk, supporting its view that the share price will move higher over the long term despite what it describes as an "undeniably elevated" current valuation at 36.8x earnings. For deeper insights into GE’s valuation and growth prospects, including 12 additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, General Electric Co, operating as GE Aerospace, announced its second-quarter 2025 financial results on its investor relations website, although specific financial performance details were not disclosed in the SEC filing. Meanwhile, TD Cowen raised its price target for GE Aerospace to $300, maintaining a Buy rating, following the company’s earnings report and an increased 2028 EBIT target to $11.5 billion. Bernstein reiterated an Outperform rating for GE Aerospace with a price target of $254 ahead of the company’s second-quarter earnings report, noting positive trends in spare parts and maintenance activities. LEAP engine deliveries have reportedly improved, supporting Airbus’s annual delivery guidance, though challenges remain for the second half of the year.
In a separate development, Watts Water Technologies (NYSE:WTS) appointed Ryan Lada as its new Chief Financial Officer, effective July 28, 2025, following Shashank Patel’s retirement. Lada transitions from The AZEK Company after its acquisition by James Hardie (NYSE:JHX) Industries. Air India completed a fuel switch inspection on its Boeing (NYSE:BA) 787 aircraft fleet, finding no issues, as reported by NDTV. These recent developments provide insights into the ongoing activities and strategic changes within these companies.
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