GE Aerospace is set to report its earnings for the third quarter of this year on Tuesday morning, during a time of increasing uncertainty in the aerospace industry due to the ongoing workers' strike at Boeing. Industry observers anticipate that GE Aerospace's quarterly revenues will show an increase, reaching $9.35 billion, up from $8.41 billion in the same period the previous year. At that time, GE Aerospace was still integrated with the General Electric conglomerate.
Since separating from the energy-oriented GE Vernova division on April 2, GE Aerospace's shares have experienced a surge of over 40%. The majority of analysts think this upward trend may continue, with all eight analysts tracked by Visible Alpha endorsing a "buy" status or equivalent. The average price target is set at $210.38, suggesting around a 9% increase from Thursday's midday price of $192.84.
Bernstein analysts, who recently upped their price target from $201 to $225, stated that due to its blend of new engine sales and its extensive “installed base” of existing engines, GE Aerospace may be "well-situated for short, medium, and long-term" prospects. These factors drive a robust and profitable aftermarket, according to the analysts.
However, the company now faces a significant query during this quarter's earnings report. Analysts have noted that investors will be keen to understand the extent to which the Boeing strike may affect production levels, with a potential knock-on effect on GE's engine sales.
Analysts from Deutsche Bank, who recently increased their price target from $212 to $235, professed that GE Aerospace continues to be one of their preferred picks in the aerospace sector.