Sheila Kahyaoglu, an analyst from Jefferies, maintained the Buy rating on GE Aerospace (GE – Research Report). The associated price target remains the same with $240.00.
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Sheila Kahyaoglu has given her Buy rating due to a combination of factors that highlight GE Aerospace’s promising financial outlook. The company’s gross margins in segments like CES and DPT have shown significant improvement, with CES gross margins projected to reach 34.1% and DPT at 23.6% in 2024, indicating strong operational efficiency. Additionally, the increase in R&D spending by 35% in CES reflects a commitment to innovation, which is likely to support long-term growth.
Another crucial factor in the Buy rating is GE Aerospace’s robust order backlog, with RPOs increasing 11% year-over-year to $172 billion, providing a solid foundation for future revenue. The company’s effective utilization of its workforce is reflected in its EBIT per employee, which stands competitively against other industry players. These financial metrics, coupled with strategic R&D investments and solid order coverage, underpin the positive outlook for GE Aerospace and justify the Buy recommendation.
In another report released on February 3, Argus Research also maintained a Buy rating on the stock with a $250.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GE in relation to earlier this year.