Aerospace Sector Outlook: J.P. Morgan anticipates strong support for aerospace and defense stocks through 2026, with commercial aerospace showing significant strength due to robust demand, production backlogs, and growth in global air traffic.
Preferred Stocks: Boeing, StandardAero, and ATI are highlighted as top picks in the aerospace sector, with Boeing expected to see increased cash flow as aircraft deliveries rise, while ATI benefits from diversifying away from Russian titanium.
Defense Sector Nuances: The defense sector outlook is more complex, with rising global military spending but uncertainties due to U.S. political dynamics. J.P. Morgan favors L3Harris Technologies and Leidos for their growth potential and attractive valuations.
Lockheed Martin Downgrade: J.P. Morgan downgraded Lockheed Martin to Neutral, citing concerns over long-term cash flow growth and execution issues, while emphasizing the need for selective investment in the defense sector due to potential risks.
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
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.
8 Buy
0 Hold
1 Sell
Strong Buy
Current: 318.500
Low
275.00
Averages
345.67
High
386.00
Current: 318.500
Low
275.00
Averages
345.67
High
386.00
Baird
Ben Kallo
Outperform -> Neutral
downgrade
$816 -> $649
2026-01-09
Reason
Baird
Ben Kallo
Price Target
$816 -> $649
AI Analysis
2026-01-09
downgrade
Outperform -> Neutral
Reason
Baird analyst Ben Kallo downgraded GE Vernova to Neutral from Outperform with a price target of $649, down from $816. The firm sees power capacity oversupply fears "shifting sentiment" on GE Vernova. The company's competitor announcements are attracting attention, the analyst tells investors in a research note. Baird says oversupply fears may outweigh GE Vernova's ability to exceed estimates in the near-term.
Goldman Sachs
Buy
maintain
$86 -> $98
2026-01-09
Reason
Goldman Sachs
Price Target
$86 -> $98
2026-01-09
maintain
Buy
Reason
Goldman Sachs raised the firm's price target on GE HealthCare to $98 from $86 and keeps a Buy rating on the shares. After a year when fundamentals diverged from stock performance, 2026 should represent a return to normalized patterns where organic growth defines relative valuation, the analyst tells investors in a research note.
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Barclays
NULL
to
Overweight
maintain
$800 -> $830
2026-01-07
Reason
Barclays
Price Target
$800 -> $830
2026-01-07
maintain
NULL
to
Overweight
Reason
Barclays raised the firm's price target on GE Vernova to $830 from $800 and keeps an Overweight rating on the shares. The firm adjusted price targets in the multi-industry group as part of its Q4 outlook. It sees a "firmer" demand outlook amid artificial intelligence order strength.
Evercore ISI
Outperform
maintain
$92 -> $95
2026-01-05
Reason
Evercore ISI
Price Target
$92 -> $95
2026-01-05
maintain
Outperform
Reason
Evercore ISI raised the firm's price target on GE HealthCare to $95 from $92 and keeps an Outperform rating on the shares. Recovering end markets and sector rotation have "set the stage for a 2026 Tools play," the analyst tells investors. In MedTech, the firm's survey work points to healthy procedure and CapEx trends into 2026 and early recovery signs in China support the group, but sector rotation and potential ACA and Medicare changes "have bears watching," the analyst added.
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.
