11:32 AM EDT, 06/03/2025 (MT Newswires) -- GE Aerospace (GE) is "very well positioned" in the industry due to the "strong" aftermarket spending and continued rise in new aircraft deliveries, RBC Capital Markets said in a Tuesday note.
The aircraft engine supplier is expected to increase its outlook at the Paris Airshow investor briefing due to the improved "sentiment" on the aerospace aftermarket, analysts led by Ken Herbert wrote.
The company is also doing relatively better since the April 2, 2024, spinoff as its market capitalization has jumped by more than $110 billion, the analysts mentioned.
"In our view, management has done a good job managing expectations and overdelivering, and we expect revisions to both the 2025 and long-term financial targets," according to the analysts.
Additionally, the analysts said that the CFM56 engine is expected to be a "source of upside" for GE as it accounts for about 20% of the company's 2025 revenue and roughly 40% of its earnings.
RBC raised GE Aerospace's price target to $275 from $220 and maintained an outperform rating on the stock.
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