GE Aerospace's (GE) conservative outlook after reporting "strong" Q2 results sets up the company to exceed expectations both in 2025 and into 2028, RBC Capital Markets said in a note Friday.

The firm said there is a "healthy level of conservatism" baked into the company's updated 2025 guidance, which implies high-teens earnings before interest and taxes margins for H2 compared with the 23.4% margin in H1.

Investors also focused on the revised 2028 EBIT outlook, which is believed to be at the lower end of expectations, according to the note.

"We believe the near-term and long-term upside potential are both compelling, as we believe GE remains best positioned to benefit from the strong engine market," RBC analysts said.

RBC raised its price target to $300 from $275, and maintained an outperform rating on GE Aerospace.

Shares of GE Aerospace were up 2.9% in recent trading Friday.

Price: 268.17, Change: +7.58, Percent Change: +2.91