GE Aerospace (NYSE:GE) saw its stock drop by 3.33% on Thursday after J.P. Morgan cut its second-quarter sales estimate for the jet engine maker. Seth Seifman, a five-star analyst at J.P. Morgan, pointed to supply chain issues that are still impacting new engine deliveries as the reason for the revised sales estimate. The new forecast for GE Aerospace’s second-quarter sales is now $8.4 billion, which is the lowest on Wall Street.
Despite the challenges associated with boosting new engine deliveries, J.P. Morgan’s report mentioned that their estimates for adjusted earnings per share (EPS) and free cash flow remain unchanged for now. Although this may seem odd, it’s important to note that engine deliveries actually generate losses, as GE earns its profits from servicing the engines.
Therefore, Seifman maintained his price target for GE Aerospace at $175 per share, which is based on a projected earnings per share figure of $6.05 for 2026 and an expected valuation multiple of 31 times earnings. It’s worth noting that, so far, Seifman has enjoyed a 100% success rate on GE stock, with an average return of 13.47% per rating.
Is GE Still a Good Buy?
Overall, analysts have a Strong Buy consensus rating on GE stock based on 15 Buys assigned in the past three months, as indicated by the graphic below. After an 87% rally in its share price over the past year, the average GE price target of $183.47 per share implies 17.84% upside potential.
