Shares of aerospace company GE Aerospace (GE) are little changed in today’s trading as investors await its Q4 earnings results on January 23 before the market opens. Analysts are expecting earnings per share to come in at $1.04 on revenue of $9.5 billion. This equates to a 26.8% year-over-year increase in earnings. It’s worth noting that GE has beaten earnings estimates for eight consecutive quarters.
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And there are reasons to believe that this winning streak could continue. Indeed, Deutsche Bank, led by 4.4-star analyst Scott Deuschle, recently reiterated its Buy rating with a $228 price target. The bank is optimistic about the aerospace and defense sector heading into 2025 due to better production momentum at Boeing (BA).
The report also pointed out that an increase in engine availability from CFM International, which is a partnership between GE Aerospace and Safran Aircraft Engine, is expected to help Airbus (EADSY) ramp up its production of narrow-body planes. This boost in engine supply is likely to drive stronger demand for GE Aerospace’s offerings.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a 5.9% price move in either direction. This estimate is derived from the $187.50 strike price, with call options priced at $5.41 and put options at $5.55.
Is GE Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GE stock based on 12 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 82% rally in its share price over the past year, the average GE price target of $227.75 per share implies 21.7% upside potential.
