GE Stock Recent News

The market is still trying to figure out how to value GE Aerospace following the spinoff of General Electric's energy units. Even when General Electric was struggling, the aerospace business was a major driver of growth.

Paradoxically, investors should welcome margin pressure coming from more engine deliveries in 2024. Growth in shop visits and GE Aerospace spares sales will help improve profit margins.

General Electric GE (NYSE: GE) completed the spin-off of its power and renewables energy businesses on April 2. The spinoff company – GE Vernova – is now the new standalone energy company, while GE Aerospace will be focused on the company's aviation technology products.

Vertical Research Partners analyst Rob Stallard is bullish on GE Aerospace stock after the spinoff of power-generation assets as GE Vernova.

Vertical Research Partners has initiated coverage of GE Aerospace GE, +6.70% with a buy rating following the spinoff of GE Vernova Inc. GEV, -1.90% this week. “The principal appeal of the newly streamlined GE is its leading aero engine business,” wrote Vertical Research Partners analyst Robert Stallard, in a note released Thursday.

With the spin-off of its power divison Vernova, GE has completed its half a decade restructuring program, resulting in a streamlined entity fully focused on the attractive Aerospace market. With the largest installed base and at peak profitability, current-gen engines including the best-selling CFM56 provide a highly profitable aftermarket sales stream that can last well into the 2030s. With strong earnings visibility from rollout of next-gen and margin expansion as LEAP and GEnx mature, I see a credible runway for GE to deliver MDD EPS growth through 28E.

GE Aerospace (GE) commences its business operations as an independent public company, following the spin-off of the GE Vernova business from General Electric.

Early new targets imply more gains ahead for the stock.

GE Aerospace's ramping up of engine production will result in decades of aftermarket revenue. The company can grab market share from RTX (Pratt & Whitney) on the Airbus A320 neo family of airplanes.

Aerospace companies tend to command valuation premiums, and GE Aerospace is enjoying valuation multiple expansion. Airplane engines benefit from lucrative aftermarket revenue as engines are utilized over a multi-decade lifespan.