April 5, 2024 - GE shares rose 5.28% to $155.17 in trading on Friday. The company declared its emergence as an autonomous, public entity after finalizing the GE Vernova spin-off this week. Analysts updating estimates and price targets for GE Aerospace, projecting gains ahead.
Independence and Market Presence
GE Aerospace has successfully transitioned into an independent company, trading on the NYSE with the ticker "GE" after its separation from GE Vernova. The company marked this significant event by participating in the ceremonial opening of the trading day on April 2, 2024, alongside GE Vernova. With the implementation of the FLIGHT DECK operating model, the company has positioned itself as a significant force in the propulsion sector, boasting a vast engine base and reporting $32 billion in service-driven revenue for 2023.
Financial Strategy and Corporate Evolution
Aiming for financial growth, GE Aerospace has set its sights on achieving an operating profit of $10 billion by 2028, with plans to reinvest in the company’s expansion and to reward shareholders with returns. This launch also represents the completion of GE's multi-year restructuring, which has fortified the company's financial standing and corporate culture. GE's strategic division has led to the inception of three innovative entities: GE HealthCare, GE Vernova, and GE Aerospace. As part of the spin-off, GE shareholders were granted shares in GE Vernova in a tax-efficient manner. GE Aerospace anticipates announcing its first-quarter earnings for 2024 on April 23 and will facilitate earnings call on the same day.
Multiple Analysts Maintained Bullish Ratings on the Stock
Jefferies analyst sets price target at $155 a share, reflecting 17% average annual earnings growth. At the same time, Barclays and Deutsche Bank set higher price targets of $175 and $190 respectively.
