(News Bulletin 247) – Jefferies confirms its Buy rating and its price target of $120 on General Electric (GE) shares.
Recent contracts ($684 million for CH-53K T408 engines up to 27) and orders (300 LEAP-1B MAX-10 for Ryanair) are noted by the analyst.
For the latter, ‘GE Aerospace will have a clearer story to tell following the spin-off of GE Vernova in early 2024’, which, according to the broker, ‘is one of the best-positioned stories on the aerospace ramp’ .
The LEAP engine is the only one to equip the 737 MAX in full expansion ‘and holds more than 50% of the shares of the competitive A320neo’, still raises Jefferies.
‘The mid-term margin target of around 20% is based on the balance of the LEAP program by 2025, continued productivity gains and positive prices/costs, partially offset by the GE9X mix’, underlines the analyst.
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