General Electric Splits into Three Companies, GE Aerospace Stock Up 100%
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Restructuring: General Electric split into three companies in 2021, with GE HealthCare Technologies seeing a 25% stock increase since its late 2022 spin-off, although it has underperformed compared to the S&P 500's 75% rise during the same period.
- Aviation Market Demand: GE Aerospace has significant growth potential due to a supply-demand imbalance in the aviation industry, with commercial air travel increasing over 10% from 2023 to 2024 and projected to grow 4.2% annually through 2030, while currently facing severe shortages of aircraft and components due to pandemic-related production halts.
- Positive Financial Outlook: GE Aerospace forecasts double-digit annual revenue growth from 2025 to 2028, with earnings per share expected to rise from $6.10 in 2025 to $8.40 in 2028, which is promising news for shareholders.
- Growth of GE Vernova: GE Vernova's backlog of grid and electrification equipment increased from $135 billion to $200 billion, indicating its leadership in the power equipment sector, while the company also raised its quarterly dividend to 50 cents and increased its stock buyback plan from $6 billion to $10 billion, enhancing shareholder returns.
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: 295.000
Low
275.00
Averages
345.67
High
386.00
Current: 295.000
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.
