Company Expects $500M Tariff Costs; Optimistic on FY25 Prospects | GE Stock News

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4 days ago
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Amid efforts to alleviate the financial impact of tariffs, the company anticipates facing approximately $500 million in tariff-related expenses. Despite this significant cost, the firm's outlook for the fiscal year 2025 has improved since earlier in the year, with executives expressing increased confidence in their future performance.

The company plans to adopt a strategic approach towards share repurchases in FY25, aiming to be "opportunistic" in its stock buyback initiatives. This approach indicates a focus on maximizing shareholder value while navigating market conditions.

Additionally, the company projects an increase in cash generation during the second quarter compared to the first quarter, signaling a positive trend in its financial operations. This anticipated improvement highlights the company's ability to manage resources effectively, even in the face of anticipated tariff expenses.

Wall Street Analysts Forecast

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Based on the one-year price targets offered by 17 analysts, the average target price for GE Aerospace (GE, Financial) is $220.67 with a high estimate of $261.00 and a low estimate of $185.00. The average target implies an upside of 23.73% from the current price of $178.35. More detailed estimate data can be found on the GE Aerospace (GE) Forecast page.

Based on the consensus recommendation from 21 brokerage firms, GE Aerospace's (GE, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for GE Aerospace (GE, Financial) in one year is $121.53, suggesting a downside of 31.86% from the current price of $178.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the GE Aerospace (GE) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.