General Electric (GE) Stock Forecast & Price Target

GE Aerospace is expected to experience growth in its commercial engines and services division as well as its defense and propulsion division, with potential for upside surprises. The company's focus on recurring service revenue and potential for expansion into new markets and technologies contribute to its competitive advantage and potential for increased margins and long-term growth. However, risks such as cyclical nature of the aerospace industry and challenges in emerging markets and supply chain disruptions must be considered.

GE Aerospace is the leader in commercial aircraft turbine engines, but with its massive global installed base, it earns most of its profits on recurring service revenue, making it highly dependent on aftermarket growth. However, our analysis suggests that aftermarket growth may decelerate as the OE production ramps up, and it could take longer than expected for GE to meet demand, causing airlines to hold onto older aircraft for longer, potentially impacting the aftermarket segment. This, combined with unknown factors such as the pace of decarbonization and energy management, leads us to have a negative outlook on GE Aerospace's stock.