Key Stats for GE Aerospace Stock
- This-Week Performance: 3%
- 52-Week Range: $159 to $333
- Valuation Model Target Price: $429
- Implied Upside: 36%
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What Happened?
GE Aerospace stock rose about 3% this week, finishing near $317 per share, as investors responded to strong earnings follow-through and fresh institutional activity that reinforced confidence in the company’s aerospace-driven outlook. Shares held most of their gains through the week, signaling steady demand rather than a short-term reaction.
The stock moved higher this week after GE reported strong fourth-quarter results, including Q4 revenue up 20%, EPS rising 19% to $1.57, and free cash flow of $1.8 billion, reinforcing confidence in earnings momentum and cash generation.
Those results capped a year in which orders grew 32% and backlog expanded to roughly $190 billion. The company now operates as GE Aerospace following the completion of its transformation from General Electric, sharpening its focus on aviation and defense markets.
CEO Larry Culp says “2025 was an outstanding year for GE Aerospace” as the company guided to another year of low double-digit revenue growth and nearly 15% EPS growth in 2026.
Institutional filings added to the momentum. Compagnie Lombard Odier SCmA increased its GE Aerospace stake by 39.4% to 55,936 shares worth about $16.83 million, while Prospera Financial Services boosted its position by 18.1% to 47,706 shares valued at roughly $14.35 million.
Prime Capital Investment Advisors also raised its stake by 23.6%, offsetting modest trims from the State of Michigan Retirement System and a sharp reduction by John G Ullman & Associates.
Taken together, this week’s move reflected improving confidence in GE Aerospace’s earnings visibility rather than a single headline.
Strong results, a growing backlog, and continued institutional accumulation helped support shares as investors positioned ahead of the company’s next phase of aerospace margin and cash flow expansion.
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Is GE Aerospace Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 10.9%
- Operating Margins: 22.3%
- Exit P/E Multiple: 39x
GE’s revenue outlook is anchored in Aerospace, where engine deliveries, long-term service agreements, and rising shop visit volumes support durable, multi-year growth rather than one-time demand.
The roughly $190 billion backlog provides strong revenue visibility as commercial aviation utilization remains elevated and airline fleets continue aging.
Earnings growth is increasingly driven by mix rather than volume alone. Aftermarket services and spare parts carry materially higher margins than original equipment, allowing profits to scale faster than revenue as shop visits, work scopes, and pricing improve.
Based on these inputs, the model estimates a target price of $429, implying about 36% total upside over roughly 2.9 years, indicating the stock appears undervalued at current prices.
Results over the next year hinge on execution across several higher-impact areas. Delivery cadence and production ramp efficiency influence near-term revenue, while airline utilization trends and engine time-on-wing performance directly affect service demand and pricing power.
At the same time, improving free cash flow conversion strengthens balance sheet flexibility and supports reinvestment in capacity and technology.
At current levels, GE appears undervalued, with future performance driven by aerospace margin durability, backlog conversion, and disciplined execution rather than aggressive multiple expansion.
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