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RBC raises GE Aerospace shares target, cites strong Q1 performance post-Vernova split

EditorEmilio Ghigini
Published 24/04/2024, 11:57
© Reuters.

On Wednesday, RBC Capital Markets adjusted its outlook on GE Aerospace (NYSE: GE) shares, increasing the price target to $175 from $165, while reaffirming its Outperform rating. The revision follows GE Aerospace's report of its final quarter as a merged company with GE Vernova, before the separation of its business units.

GE Aerospace, now standing alone from GE Vernova, disclosed adjusted earnings per share (EPS) of $0.92 for the first quarter of 2024. The company's revenues climbed to $8.1 billion, a 15% increase, with an operating profit of $1.5 billion, translating to a 19.1% margin. The firm also boasted a free cash flow (FCF) of $1.7 billion, indicating a conversion rate of approximately 160%.

In light of these results, GE Aerospace has upgraded its full-year 2024 operating income guidance by $150 million. Additionally, the company has introduced an adjusted EPS forecast ranging from $3.80 to $4.05 for the fiscal year. These figures underscore the company's robust performance and promising prospects for the year ahead.

The analyst from RBC Capital Markets expressed confidence in GE Aerospace's 2024 outlook, supported by the strong financial metrics reported for the first quarter. The raised price target to $175 reflects this optimistic stance on the company's future financial performance.

InvestingPro Insights

Following RBC Capital Markets' upbeat assessment of GE Aerospace, InvestingPro data and tips offer additional context for investors considering the company's stock. With a market capitalization of $178.51 billion and a significant revenue growth of 16.96% over the last twelve months as of Q1 2023, GE Aerospace is demonstrating solid financial expansion. Additionally, the company's impressive one-year price total return of 104.39% signals strong market confidence.

InvestingPro Tips indicate that analysts have revised their earnings upwards for the upcoming period, suggesting that GE Aerospace's financial outlook may continue to be positive. Moreover, the company has maintained dividend payments for 54 consecutive years, which could be appealing for income-focused investors. For those looking to delve deeper into GE Aerospace's prospects, InvestingPro provides several more tips and a detailed analysis at: https://www.investing.com/pro/GE. Investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking comprehensive insights that could guide investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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