GE Aerospace (GE) a Strong Buy, Analysts Forecast 7% Upside

GE Aerospace (NYSE:GE) is among the 10 Best Defense Stocks to Buy in the S&P 500. The company is an important player in the defense sector. Last week, in an initiative with Lockheed Martin, the company announced the completion of a series of tests showing the effectiveness of a liquid-fueled rotating detonation ramjet in hypersonic missiles.

This marked the first such collaboration between the companies under a joint technology development arrangement. The successful demonstration is set to make missiles fly faster and travel longer distances, while reducing costs in contrast to other ramjet alternatives.

Earlier on January 8, GE Aerospace (NYSE:GE) said it had secured a $1.4 billion multi-year contract from the Naval Air Systems Command (NAVAIR) to provide additional T408 engines for the Marine Corps’ CH-53K.

The Lots 9-13 contract builds on the six previous agreements for the T408 Turboshaft engines, which included a 2023 contract worth $684 million. The latest deal will see GE Aerospace (NYSE:GE) provide new production and spare engines, along with sustainment support.

In other news, GE Aerospace (NYSE:GE) continues to be on analysts’ radar. Recent updates include UBS, on January 15, lifting its price target on the stock to $368 from $366, with a Buy rating. Earlier, on January 13, Citigroup also reiterated its Buy rating. However, the firm cut its price target on the shares to $378 from $386.

Based on the ratings of 9 analysts, the stock is a Strong Buy. It has a one-year average share price target of $348.33, representing an upside potential of 7.14% as of the close on January 19.

GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company with an installed base of around 25,000 military and 45,000 commercial aircraft engines.

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Disclosure: None.