Bond.az - RBC Capital reiterated an Outperform rating on GE Aerospace (NYSE:GE) with a $355.00 price target, following the company's Defense & Propulsion Technologies Showcase.
GE Aerospace provided a positive outlook for revenues and margins in its DPT segment, citing services, international mix, cost actions, and pricing as drivers.
The defense business is experiencing strong tailwinds, bookings strength, and market positioning that support growth above GE's prior medium-term guidance. RBC Capital noted the segment's performance exceeds expectations.
RBC Capital stated the defense business remains under-appreciated by investors and could be a source of upside for the company.
Market sentiment on GE Aerospace continues to focus on the Commercial Engines & Services outlook. RBC Capital maintained its Outperform rating and $355 price target.
In other recent news, GE Aerospace reported strong Q1 earnings: non-GAAP EPS of $1.86 beat consensus of $1.60, and adjusted revenue of $11.61 billion topped expectations of $10.69 billion. Bernstein SocGen Group reiterated an Outperform rating and $405 target. Additionally, GE Aerospace secured a U.S. Air Force contract for preliminary design review of its GE426 engine.
Meanwhile, UBS lowered its price target to $350 from $357 due to geopolitical concerns, but maintained a Buy rating. Morgan Stanley adjusted its target to $400 from $425, keeping an Overweight rating. GE Aerospace's CEO is also set to join a U.S. delegation to China.
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