RBC Raises GE Aerospace (GE) Price Target, Maintains Outperform Rating

RBC Capital Markets increased its price target on GE Aerospace (NYSE:GE), on June 3, to $275 from $220, reiterating an Outperform rating as investor interest in the aerospace sector remains elevated. Analyst Ken Herbert sees the company as a key play on the ongoing industry upcycle, highlighting several potential drivers of further upside.

A huge in-process machining center producing parts for aircraft and aerospace systems.

The firm’s updated target reflects expectations for stronger guidance from GE management, particularly at the upcoming Paris Airshow, where revised projections for 2025 and beyond could reinforce confidence in the company’s growth path. RBC anticipates that GE Aerospace (NYSE:GE) will provide greater clarity on its strategic roadmap and capital allocation priorities, which could resonate positively with investors.

Despite the stock’s robust year-to-date performance, Herbert believes it remains attractively positioned. Ongoing improvements in the commercial aerospace market, combined with GE’s strong execution on its engine and services businesses, support the case for continued momentum. RBC also noted that Wall Street estimates may still be too conservative, with room for upward revisions as demand for air travel and aircraft production stabilizes globally. The firm expects that improving order visibility and operational leverage will help sustain earnings growth into the medium term.

With investor focus shifting toward durable earnings and free cash flow generation, GE Aerospace (NYSE:GE) is seen as a compelling name within the industrial space, poised to benefit from both cyclical recovery and structural tailwinds.

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