In a report released today, Gautam Khanna from TD Cowen maintained a Buy rating on GE Aerospace (GE – Research Report), with a price target of $200.00.
Gautam Khanna has given his Buy rating due to a combination of factors that highlight GE Aerospace’s strong performance and strategic positioning. The company demonstrated robust growth in its commercial aftermarket sales, which increased by 17% year-over-year, indicating solid demand and a healthy backlog for engine maintenance and repair services. Additionally, GE Aerospace’s ability to implement price hikes on spare parts and impose temporary tariff surcharges suggests strong pricing power, which could help mitigate potential tariff pressures.
Furthermore, improvements in the supply chain have been notable, with key supplier shipments showing a positive trend and becoming more predictable, enhancing GE’s internal productivity. Although there are concerns about tariff exposure, GE’s proactive measures in pricing and SG&A actions aim to counterbalance these challenges. Overall, the combination of strong aftermarket performance, supply chain improvements, and strategic pricing initiatives supports Gautam Khanna’s Buy rating for GE Aerospace.
Khanna covers the Industrials sector, focusing on stocks such as Boeing, GE Aerospace, and Hexcel. According to TipRanks, Khanna has an average return of 14.9% and a 70.08% success rate on recommended stocks.