GE Aerospace Stock Forecast 2025-2030: Are GE Shares Still Undervalued?

GE Aerospace’s stock price has more than doubled over the past year due to strong quarterly results. The UK-based company has also revised up its full-year profit expectations on the back of a strong order book.

But is this enough to push the GE stock price higher, or will investors getting involved now be buying at an unsustainably high level?

In our GE Aerospace stock forecast 2025-2030, we examine what’s been driving the share price and what analysts expect to happen over the coming year and beyond.

Table of Contents Table of Contents

1. Key Takeaways
2. Summary of the Latest GE Stock Predictions
3. GE Stock Analysis
4. Latest GE News
5. GE Stock Forecast 2025: What Do The Analysts Say?
6. GE Stock Predictions: Where Will The Price Go Next?
7. The Bottom Line: Should I Invest in GE?
8. FAQs
9. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Summary of the Latest GE Stock Predictions
3. GE Stock Analysis
Show Full Guide
4. Latest GE News
5. GE Stock Forecast 2025: What Do The Analysts Say?
6. GE Stock Predictions: Where Will The Price Go Next?
7. The Bottom Line: Should I Invest in GE?
8. FAQs
9. References

Summary of the Latest GE Stock Predictions

Here, we examine the GE Aerospace stock projections of analysts and algorithmic forecasters to give an idea of what investors may experience over the coming years.

GE Stock Analysis

An important part of our GE share price forecast is to examine the company’s background and how its share price has performed over the past year.

GE Aerospace Background

The company is a global leader in designing, manufacturing, and servicing large aircraft engines, along with partner Safran in a CFM joint venture.

GE Aerospace is the remaining core business of the original company, which was formed in 1892 and ended up being a conglomerate with a peak revenue of $130 billion in 2000.

Over the last eight years, the company has spun off its appliance, finance, healthcare, and wind and power businesses.

Stock Price Performance

It’s been a great period for GE investors. The GE stock price has risen 113.61% to $189.66 over the past year to September 24, 2024. Year-to-date, the shares have risen 86.20%.

A combination of strong quarterly results, positive management updates, and upwardly revised forecasts have been behind the stellar performance.

More detailed analysis of the GE Aerospace stock price shows the 52-week low was $105.53, while the 52-week high came in at $189.78, according to MacroTrends.

Meanwhile, the all-time high stock closing price was $203.22, achieved on August 28, 2000. However, this was before the company started spinning off its various businesses.

Latest GE News

Let’s now take a look at the key GE Aerospace news that has influenced stock price movements over the past year and is expected to be influential over the coming months.

AI Platform For Employees

In late September 2024, GE Aerospace announced it was collaborating with Microsoft (MSFT) on a new AI platform to help its 52,000 employees.

According to a statement, workers can use the new system to discuss new ideas, learnings, and initiatives that will “propel travel to new heights.”

The platform, which has been dubbed ‘AI Wingmate,’ also includes a dedicated learning module for FLIGHT DECK, its lean operating model.

David Burns, chief information officer at GE Aerospace, said: “Generative AI is changing the way we all work, enabling us to be more productive with our daily work tasks than ever before.”

Second Quarter Results

GE Aerospace reported total orders were up 18% to $11.2 billion for the second quarter of 2024, while total adjusted revenue came in at $8.2 billion, representing a 4% increase.

This equated to a (GAAP) profit of $1.4 billion and a profit margin of 15.9% while continuing earnings per share came in at $1.20.

In a statement, Larry Culp, GE’s chairman and chief executive, said: “The GE Aerospace team delivered another strong quarter marked by double-digit increases across orders, operating profit, and free cash flow.”

Now let’s look in more detail at the two main company segments: Commercial Engines & Services and Defense & Propulsion Technologies.

Commercial Engines & Services

Orders of $9.2 billion were recorded for the three months to the end of June 30, 2024, which represented a 38% year-over-year increase, according to the results.

“Profit of $1.7 billion was up 21%, with margins expanding 320 basis points driven by services volume, pricing, and mix,” it noted.

Defense & Propulsion Technologies

Orders were down 25% to $2.3 billion, primarily due to the timing of orders in Defense & Systems, according to GE.

“Profit of $344 million, increased 71% year-over-year, with margins expanding 580 basis points, driven by mix, productivity, price, and improved program performance,” it stated.

Outlook for GE Stock

So, what is the outlook for GE Aerospace stock?

GE’s Larry Culp revealed that full year profit and free cash flow guidance was being raised due to its performance year-to-date and momentum across its businesses.

“We are accelerating our actions and leverage FLIGHT DECK to unlock supply constraints and fully meet customer demand. I am confident that advancing our strategic priorities for today, tomorrow and the future, will enable us to meet the needs of our customers and create exceptional value for shareholders,” he said.

Therefore, the latest guidance is for profit to come in between $6.5 billion and $6.8 billion for the full year. This is up from the previous prediction of $6.2 billion to $6.6 billion.

GE also gave further details of the outlook for its two divisions:

GE Stock Forecast 2025: What Do The Analysts Say?

Next, we look at analysts’ GE stock predictions. Are they positive about the GE Aerospace stock outlook, or do they have reservations?

GE Aerospace Has Shot off the Runway at Pace

According to Danni Hewson, head of financial analysis at AJ Bell, GE Aerospace has shot off the runway at pace after the split of GE’s disparate entities completed earlier this year.

She told Techopedia:

“The aviation division took a hit during the pandemic when lockdowns decimated the airline sector and prevented people from traveling. But post-pandemic pent-up demand has boosted holiday firms and airlines alike as people made the most of their freedom to fly.”

This has been seized upon by GE.

“For a company that makes and services engines, the last few years have created an opportunity that GE has made the most of, even as it continues to drill down on its cost-cutting drive,” he explained.

Even delays to airline deliveries, not least because of Boeing’s ongoing troubles, have failed to faze GE as its service sector has ramped up, keeping older aircraft flying.

“Once the current pinch points are cleared, record passenger numbers are expected to create further opportunities for growth and with operating and profit margins both healthy, the company’s fundamentals look strong,” she added.

GE Shares Might Be Undervalued

Nicolas Owens, equity analyst at Morningstar, believes the shares are undervalued and has increased his fair value GE price target from $170 to $192.

“In light of our forecast and GE’s declared capital allocation policy of returning 70%-plus of available cash to shareholders, we expect double-digit annual dividend payment increases along with $18 billion in share buybacks through 2028.”

Owens also appreciates the “lean operating methods” that Larry Culp and his team have implemented at GE.

“We think these programs and the rigor with which the team implements them lend credibility to the company’s claims that it can achieve ongoing productivity improvements in its manufacturing and service arms,” he added.

Looking ahead, Morningstar’s aggregate forecast shows commercial aerospace margins approaching 27% and defense margins just over 22% early next decade.

“Beyond the medium term, we see the potential for further margin expansion, assuming no major disruption to air traffic or the manufacturing supply chain,” Owens added.

GE Stock Predictions: Where Will The Price Go Next?

So, is GE Aerospace a buy, hold, or sell? What are the expectations for the GE Aerospace future stock price?

The stock is rated a ‘moderate buy,’ according to the views of 15 analysts compiled by MarketBeat as of September 25, 2024. Fourteen see it as a ‘buy,’ while one has it down as a ‘hold.’

Meanwhile, the analysts’ views from TipRanks are more optimistic, with the price expected to increase by 4.2% to $197.55 over the next 12 months.

They also see it as a ‘strong buy,‘ with the range of projected GE stock price targets ranging from $180 to $215. This serves to illustrate the differences in views.

The following table shows the latest analysts’ GE stock predictions as of September 25, 2024.

Meanwhile, the algorithmic forecasts of WalletInvestor are even more upbeat, with the one-year forecast putting the stock up to $242.60, while the 5-year GE forecast comes in at $467.14.

How about a GE Aerospace stock long-term forecast?

Most analysts are unwilling to look too far into the future, which is why a GE stock forecast 2030 is viewed as unrealistic.

Note that analysts’ and algorithm-based GE stock projections might prove to be wrong.

The Bottom Line: Should I Invest in GE?

There is no denying that investors have benefited from holding shares in the company, as the GE stock price has more than doubled over the past year.

The big question is: can it go higher? Well, the answer is yes, according to the consensus GE Aerospace stock expectations of stock market analysts as of September 25, 2024.

The most optimistic believe that record passenger numbers are expected to create further opportunities for GE’s growth over the coming years.

However, there are no guarantees. You will need to look at the evidence and carry out your own GE stock forecast before investing money into the company.

FAQs