Intel stock extends gains after report of possible U.S. government stake
On Tuesday, RBC Capital analysts increased the price target for GE Aerospace (NYSE: GE) stock to $275 from $220, while maintaining an Outperform rating. With a current market capitalization of $265.66 billion and trading at a P/E ratio of 38.93, InvestingPro analysis indicates the stock is currently trading above its Fair Value. The analysts highlighted the robust performance of GE Aerospace’s CFM56 engine, which contributes significantly to the company’s earnings.
The analysts noted that despite a remarkable 48.65% rise in GE Aerospace stock year-to-date and a 54.3% gain over the past year, they foresee additional catalysts that could drive further growth. These include potential increases in the company’s 2025 and mid-term outlook, expected to be announced at the Paris Airshow. InvestingPro subscribers have access to 12 additional key insights about GE’s valuation and growth prospects.
RBC Capital emphasized the importance of GE Aerospace’s services business, with the CFM56 engine playing a pivotal role by representing approximately 40% of the company’s earnings. The analysts believe this segment will continue to provide growth opportunities.
The report from RBC Capital positions GE Aerospace as a core holding for investors seeking exposure to the aerospace cycle. The analysts anticipate that the stock will benefit from upward revisions in consensus estimates, reinforcing their positive outlook.
In other recent news, Qatar Airways reported a record 28% increase in its annual net profit, reaching 7.8 billion Qatari riyals ($2.1 billion). This financial achievement is attributed to strategic partnerships and substantial investments, including a 25% stake in Virgin Australia and South Africa’s Airlink. The airline also confirmed a significant order for 160 Boeing (NYSE:BA) 777X and 787 planes equipped with GE Aerospace engines, valued at $96 billion, marking the largest widebody deal between the companies. In related developments, GE Aerospace has expanded its partnership with Qatar Airways through the purchase of over 400 engines, including 60 GE9X and 260 GEnx units, which are part of a record engine order.
Additionally, Jefferies has raised the price target for GE Aerospace shares to $260, maintaining a Buy rating, reflecting confidence in the company’s operational strategies and expansion plans. This comes after a detailed tour of GE Celma in Brazil, where plans to increase engine overhaul capacity were discussed. Meanwhile, Kratos Defense (NASDAQ:KTOS) & Security Solutions and GE Aerospace have formalized a teaming agreement to develop propulsion technologies for unmanned aerial systems. This collaboration focuses on creating affordable, high-performance engines for defense applications, aiming to meet the U.S. national security needs. These developments highlight significant movements in the aviation and defense sectors, with strategic partnerships and investments driving growth and innovation.
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