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GE Aerospace stock rated Buy at Vertical Research post Vernova split

EditorEmilio Ghigini
Published 04/04/2024, 12:20
© Reuters.

On Thursday, Vertical Research Partners initiated coverage on shares of GE Aerospace (NYSE:GE) stock, assigning a Buy rating and setting a price target of $160. The firm's analyst highlighted the company's strong position following the completion of the Vernova split, emphasizing GE Aerospace's significant and high-quality exposure to the aerospace aftermarket.

The analyst pointed out that the aerospace aftermarket is a lucrative sector for GE Aerospace, contributing approximately 80% of its operating profit. Despite acknowledging some remaining non-core baggage and a high valuation, the firm expressed confidence that the stock has room to grow.

GE Aerospace's performance has been notable, with the stock price increasing by 79% over the past year. The analyst's positive outlook suggests that the company stands out among its peers in the mega-cap US aerospace sector. The firm's assessment indicates a belief in GE Aerospace's potential for continued success in the market.

The Buy rating comes as a vote of confidence for investors who have witnessed the company's stock on an upward trajectory. With the aerospace aftermarket being a key profit driver for GE Aerospace, this focus is seen as a strategic advantage that could support further stock appreciation.

InvestingPro Insights

As GE Aerospace (NYSE:GE) garners a Buy rating from Vertical Research Partners with a price target of $160, real-time data from InvestingPro underscores the financial health and market presence of the company. With a robust market capitalization of $159.2 billion and a notable revenue growth of 16.96% in the last twelve months as of Q1 2023, GE Aerospace demonstrates a strong financial trajectory. The company's Price / Book ratio stands at 5.81, reflecting investor confidence and a premium valuation compared to book value.

An InvestingPro Tip highlights that GE Aerospace is a prominent player in the Industrial Conglomerates industry, which aligns with the analyst's emphasis on the company's significant exposure to the aerospace aftermarket. Additionally, the company has been profitable over the last twelve months and is expected to remain profitable this year, reinforcing the optimistic outlook shared by the analyst.

Investors interested in a deeper dive into GE Aerospace's performance can find additional InvestingPro Tips, with PRONEWS24 offering an extra 10% off a yearly or biyearly Pro and Pro+ subscription. There are 13 additional tips available on InvestingPro that could provide further insights into the company's performance and potential.

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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