Morgan Stanley Sees Growth Potential in GE Aerospace
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Source: CNBC
- Rating and Price Target: Morgan Stanley initiated coverage on GE Aerospace with an overweight rating and a $425 price target, indicating a 32% upside, reflecting the market's undervaluation of its growth potential.
- Services Growth and Pricing Power: Analyst Kristine Liwag highlighted GE Aerospace's strong durable services growth and pricing power, combined with a pristine balance sheet, suggesting a long-term stable growth outlook.
- Earnings Forecast Revisions: Forecasts for GE Aerospace's earnings and free cash flow are expected to exceed consensus by 8% to 14% from 2027 to 2030, driven primarily by strong services growth and aftermarket strength, showcasing the company's competitive edge in the industry.
- Valuation Discount and Market Response: Despite a 60% surge in GE Aerospace's stock over the past 12 months, it still trades at about a 30% discount to top peers, indicating potential for valuation upside alongside rising earnings expectations.
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Analyst Views on GE
Wall Street analysts forecast GE stock price to rise
9 Analyst Rating
8 Buy
0 Hold
1 Sell
Strong Buy
Current: 292.680
Low
275.00
Averages
345.67
High
386.00
Current: 292.680
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 50,000 commercial and 30,000 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.
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