BUZZ - Broker Opinion: GE Aerospace Maintains Its Course Amid Macro-Economic Uncertainty

October 21 - GE Aerospace GE.N raised its earnings outlook for 2026 for the second time this year (link), driven by sustained strong demand for aircraft engine maintenance and spare parts, although its updated outlook suggests fourth-quarter earnings will fall short of expectations.

** The stock has fallen 2.7% year-to-date, while the S&P 500 Aerospace & Defense sector is down 4% .SPLRCAERO

Coping with a challenging market

** Morgan Stanley (maintains "Overweight" rating, target price: $375) said that despite facing pressure from oil prices and potential P/E compression, durable aftermarket demand and strong earnings visibility continue to support upside for the stock.

** Royal Bank of Canada (RBC) ("Outperform" rating, target price: $375) pointed out: "While we expect excellent growth in the services business in 2027, lingering issues in air travel and the macroeconomic environment, as well as margin uncertainty, remain drag factors on market sentiment."

** JPMorgan ("Overweight", target price: $375) stated that GE's aftermarket growth in previous quarters was unusually strong, and the current slowdown in growth is causing some degree of pullback in the stock.

** Citigroup ("Buy", target price: $431) noted: "Given that this guidance update comes amid heightened global macroeconomic worries, we believe GE is likely to ultimately far exceed these expectations."

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