- GE Aerospace faces a $500 million cost increase by 2025 due to supply chain risks and trade tensions.
- Analysts predict an average price target of $220.67, suggesting a 16.64% upside from the current price.
- The company's GF Value estimate indicates a 35.76% potential downside, reflecting valuation challenges.
GE Aerospace (GE, Financial) is navigating a turbulent landscape as global supply chain risks intensify. With trade tensions and tariffs expected to inflate costs by over $500 million by 2025, GE is strategically leveraging foreign trade zones and implementing robust cost-control measures to shield its profit margins. Furthermore, the collapse of duty-free agreements adds a layer of complexity to aircraft deliveries, further challenging the company's operational efficiencies.
Wall Street Analysts' Forecast
In light of current market conditions, 17 analysts have set a one-year average price target of $220.67 for GE Aerospace (GE, Financial). This projection includes a high mark of $261.00 and a lower bound of $185.00, highlighting potential volatility. The average target suggests a 16.64% upside from the current share price of $189.18. For a comprehensive outlook, visit the GE Aerospace (GE) Forecast page.
Reflecting on the sentiment from 21 brokerage firms, GE Aerospace (GE, Financial) holds an average brokerage recommendation of 1.8, signaling an "Outperform" status. This rating is part of a scale from 1, indicating a Strong Buy, to 5 for a Sell, underscoring confidence among analysts.
GF Value Insight
According to GuruFocus estimates, the anticipated GF Value for GE Aerospace (GE, Financial) over the next year stands at $121.53. This suggests a significant downside of 35.76% from the current price of $189.18. The GF Value metric provides an estimate of fair stock value, derived from historical trading multiples and projected business growth and performance. For further insights, explore the GE Aerospace (GE) Summary page.
