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Investing.com - UBS raised its price target on GE Aerospace (NYSE:GE) to $366.00 from $344.00 on Wednesday, while maintaining a Buy rating on the aerospace manufacturer’s stock. The new target sits within the analyst range of $266 to $374, with GE showing remarkable momentum, having delivered an 80.77% return year-to-date.
The investment bank cited GE’s strong end market conditions and impressive operational performance as key factors behind the increased target, despite acknowledging the stock’s demanding valuation at 27 times UBS’s estimated 2026 EBITDA. According to InvestingPro data, GE currently trades at a P/E ratio of 43.54 and is trading above its Fair Value estimate.
UBS expects GE to continue beating expectations and raising guidance, even as the company sets increasingly higher performance targets for itself. The firm noted that while aftermarket growth will likely decelerate in 2026, multiple areas remain that could drive consensus estimates higher. This optimism is supported by GE’s strong revenue growth of 13.06% and robust financial health score from InvestingPro, which identifies 16 additional key factors affecting the stock’s outlook.
The research note highlighted potential upside of 7% to 2025 consensus free cash flow estimates and 13% to 2028 projections, supporting the premium valuation as "warranted" given GE’s strong execution.
UBS’s mid-single digit upward estimate revisions made the stock appear relatively less expensive, with the firm concluding that "GE continues to fire on all cylinders" in its aerospace business.
In other recent news, GE Aerospace reported impressive third-quarter results for 2025, exceeding analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.66, surpassing the forecasted $1.45. Additionally, GE Aerospace reported revenue of $11.3 billion, which was higher than the anticipated $10.37 billion. These results highlight the company’s strong performance and have garnered positive attention from investors. In line with these developments, Wolfe Research raised its price target for GE Aerospace from $330 to $340, maintaining an Outperform rating. Wolfe Research noted that sales and earnings per share were tracking approximately 9% ahead of expectations. These updates reflect recent developments in the company’s financial performance and analyst outlooks.
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