Citi Adds GE Aerospace to Focus List, Sees $1 Trillion Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12h ago
0mins
Source: seekingalpha
- Significant Market Potential: Citi has added GE Aerospace to its North America Equity Focus List, asserting that the company possesses the scale and execution capabilities to potentially reach a $1 trillion market capitalization within the next 5 to 10 years, highlighting its robust growth potential in the aerospace sector.
- Optimistic Growth Outlook: Citi anticipates that GE will achieve double-digit revenue growth alongside consistent margin expansion, based on its unique technological and competitive positioning, indicating that the growth runway in the aerospace aftermarket is comparable to that of smaller peers.
- Price Target Established: Citi has set a base-case price target of $380 for GE, derived from various valuation methods applied to projected 2027 results, reflecting support from historical valuation ranges and the company's earnings momentum, thus indicating an attractive investment opportunity.
- Risk Factors Noted: Despite GE's leading position in the aerospace market, Citi cautions about risks such as a potential slowdown in global passenger air travel, supply chain disruptions, and competitive pressures that could hinder the company's ability to secure new programs.
Analyst Views on GE
Wall Street analysts forecast GE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GE is 345.67 USD with a low forecast of 275.00 USD and a high forecast of 386.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
0 Hold
1 Sell
Strong Buy
Current: 297.470
Low
275.00
Averages
345.67
High
386.00
Current: 297.470
Low
275.00
Averages
345.67
High
386.00
About GE
General Electric Company, doing business as GE Aerospace, is a global aerospace propulsion, services, and systems company. The Company has an installed base of approximately 45,000 commercial and 25,000 military aircraft engines. The Company operates through two segments: Commercial Engines & Services and Defense & Propulsion Technologies. The Commercial Engines & Services segment designs, develops, manufactures and services jet engines for commercial airframes, as well as business aviation and aeroderivative applications. Its services include maintenance, repair and overhaul (MRO) of engines and the sale of spare parts and offers services under a variety of arrangements. The Defense & Propulsion Technologies segment provides defense engines and critical aircraft systems and consists of its Defense & Systems and Propulsion & Additive Technologies businesses. Its portfolio of brands includes Avio Aero, Unison, Dowty Propellers and Colibrium Additive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
