GE Share prices are 80% of what they were before they spun off 1 share of GEV for every share of GE on 4/2/24 so this $190 target is a huge upgrade.
GE Aerospace rated Buy at Goldman Sachs after energy spinoff
Apr. 09, 2024 8:00 AM ETGE Aerospace (GE) StockGEHC, GEV
By: Rob Williams, SA News Editor
GE Aerospace (NYSE:GE) on Tuesday was rated Buy among analysts at financial-services firm Goldman Sachs. They said the maker of jet engines, which this month spun off its energy business into a separate publicly traded company, was poised for growth with rebounding demand for new airplanes.
“GE Aerospace (GE) has high market shares in the aerospace engine oligopoly,” Noah Poponak, analyst at Goldman, said in an April 9 report. “Engines have great long-term cash flow characteristics with recurring revenue and pricing power in a long-term secular growth market.”
Goldman set a 12-month price target of $190 a share on GE Aerospace (GE) based on an estimated multiple of 22.5 times earnings before interest, taxes, depreciation and amortization of $9.4 billion for fiscal 2025.
GE Aerospace (GE) last week launched as an independent public company with the spinoff of GE Vernova (GEV), which makes power turbines. Its introduction was the latest step in the breakup of conglomerate General Electric into three companies.
“It’s good to be in the aerospace aftermarket, including the engine business,” according to Goldman. “Engines are high barrier to entry with limited competition, long-lived assets, maintenance-intensive, highly regulated, critical to flight and contribute a high percentage of the total value of an airplane.” |
