General Electric (GE) Stock Forecast & Price Target

GE Aerospace is well-positioned to continue its strong financial performance due to its leadership in the global aircraft turbine engine market, recurring service revenue stream, and commitment to sustainability in the aviation industry. Their recent focus on improving free cash flow is a positive sign for investors and the company's split into two segments allows for a targeted approach. However, potential risks such as economic downturns and geopolitical instability should be carefully monitored.

GE Aerospace is a highly profitable and well-established company with a strong global presence in the commercial and military aerospace industry. However, as a standalone company post-spinoff, GE Aerospace faces significant challenges such as the ongoing ME conflict and capacity risks in 2026-2027. Despite strong services growth, concerns over peak AM and potential lack of support for current multiple in the 2H26-2027 are pressing. The company's strong performance in 2Q26 earnings and expected guidance raise have mitigated these concerns, but economic conditions, profitability, emerging market exposure, and supply chain disruptions remain risks to its outlook. The company's high R&D spending and sustainable competitive advantage in its commercial and defense engine businesses are key factors supporting its strong outlook. However, expectations may be too low, and the aftermarket and OE cycles could be stronger and last longer than expected. While valuation optics currently work against the stock, we believe GE represents a core holding for A&D exposure and value it at a 39x multiple on our 2028 FCF estimate of $10.5B, supported by our Buy rating and $400 PT.