General Electric (GE) Is Up 8.8% After New Aerospace Engine Wins And Space Deals

• In recent weeks, Starfighters Space moved its STARLAUNCH 1 rocket program into Critical Design Review with engineering support from GE Aerospace, while United Airlines announced it selected 300 GEnx engines from GE Aerospace to power its expanded Boeing 787 Dreamliner fleet.
• Together with a new U.S. Air Force engine development contract and other aerospace collaborations, these developments highlight GE Aerospace's expanding role across commercial, defense, and emerging space propulsion markets.
• With these new engine orders and defense-space collaborations in mind, we'll now examine how they influence GE Aerospace's investment narrative.

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General Electric Investment Narrative Recap

To own GE Aerospace today, you need to believe in a durable engine and services franchise across commercial, defense, and now early space applications, supported by strong recent earnings and cash generation.

The United Airlines GEnx order directly supports the core services-driven margin story in the near term, while newer efforts like the Starfighters STARLAUNCH 1 collaboration are interesting but not yet material to the main catalyst or to the key risks around commercial exposure and supply chain pressures. The most relevant recent announcement here is the joint US Air Force contract with Kratos Defense to design the GEK1500 engine for small Collaborative Combat Aircraft. This aligns closely with GE Aerospace's defense catalyst by broadening its propulsion footprint into unmanned systems, potentially enriching the installed base that underpins long term services revenue, while also partially offsetting the company's heavy reliance on commercial aviation.

Yet against this optimism, investors should also be aware of how supply chain strain and inflation could still... Read the full narrative on General Electric (it's free!)[2] General Electric's narrative projects £50.8 billion revenue and £9.5 billion earnings by 2028.

This requires 6.9% yearly revenue growth and about a £1.9 billion earnings increase from £7.6 billion today. Uncover how General Electric's forecasts yield a £357.24 fair value[3], a 4% upside to its current price.

Exploring Other Perspectives

While the base case focuses on steady growth and supply chain execution risk, the most bullish analysts were already assuming revenues near US£54.8 billion and earnings around US£10.3 billion by 2028, so this latest engine and space news could push their already more optimistic narrative even further from the more cautious views. Explore 8 other fair value estimates on General Electric[4] - why the stock might be worth 29% less than the current price!

The Verdict Is Yours

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Don't miss this chance: This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data.

Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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References

1. ^ 15 dividend fortresses (simplywall.st)
2. ^ Read the full narrative on General Electric (it's free!) (simplywall.st)
3. ^ Uncover how General Electric's forecasts yield a £357.24 fair value (simplywall.st)
4. ^ Explore 8 other fair value estimates on General Electric (simplywall.st)
5. ^ Try a Demo Portfolio for Free (simplywall.st)
6. ^ Get in touch (investor-research.typeform.com)
7. ^ [email protected] (simplywall.st)