Al Root

The Paris Air Show is days away, and analysts are refining GE Aerospace numbers ahead of the biennial junket.

The numbers are going up.

Friday, Jefferies analyst Sheila Kahyaoglu raised her GE Aerospace price target to $300 from $260. She rates shares Buy.

"In Paris, GE could raise 2028 [operating-profit guidance] by at least 10% to $11 billion," wrote Kahyaoglu. GE Aerospace is projected to generate about $8.3 billion in 2025 operating profit, implying an average annual growth of about 10%.

At the show, she is looking for news about engine-level framework refreshes, improvement in LEAP engine reliability, GE's Flight Deck AI assistance, and the "RISE" opportunity.

GE RISE engine program is a next-generation open fan engine that can improve fuel efficiency by some 20% over GE's LEAP engines, which improved fuel efficiency over the CFM56 engine by some 15%.

RISE isn't on a plane program yet. More significant testing should begin in 2026, with a commercial launch eyed in the 2030s.

One thing Kahyaoglu isn't waiting for is new orders for jets. Backlogs at Airbus and Boeing stretch out for more than a decade. "Orders are basically irrelevant at this stage as the backlogs are so big," said Vertical Research Partners analyst Rob Stallard, adding there will probably be a few announcements. The key for Boeing and Airbus is to show they are "actually delivering stuff, so supply chain and airline commentary on the ramp outlook [will be] a focus."

"We are years into a supply-constrained, not a demand-constrained environment," says AeroDynamic Advisory managing director Richard Aboulafia. In Paris this year, "orders are for tourists, professionals [will] focus on supply chain."

Jefferies isn't the first broker to hike a target price ahead of Paris. Deutsche Bank recently raised its price target on GE Aerospace stock to $300 from $261. RBC raised it to $275 from 220.

Overall, the average analyst price target is about $247, up about $20 over the past month. That target price is still below where GE Aerospace shares are currently trading.

That hasn't dissuaded many analysts, as there have been more upgrades than downgrades over the past few weeks. Overall, 77% of analysts covering the stock have Buy ratings. The average Buy-rating ratio for stocks in the S&P 500 is about 55%.

GE Aerospace stock was down 0.3% in premarket trading at $251.27, while S&P 500 and Dow Jones Industrial Average futures were up 0.3% and 0.2%, respectively.

The move down on a target hike isn't as surprising when looking at the starting point. Coming into Friday trading, 21% over the past month. Sometimes, investors can be ahead of the Street. That can signal good news is coming or it can be a warning that investors are a little too excited.

There is some excitement brewing over Paris and recent orders for planes with GE Aerospace engines won by Boeing in the U.K. and Middle East. Still, Wall Street doesn't look worried about the future of GE Aerospace.

Write to Al Root at allen.root@dowjones.com

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June 06, 2025 09:07 ET (13:07 GMT)

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