GE Aerospace Stock Is Super Expensive, But Still A Buy

(10min)

Summary

  • GE Aerospace posted strong Q2 results with $8.2 billion in revenue and $1.20 adjusted EPS, beating analyst estimates despite supply chain challenges.
  • The company is actively addressing supply chain issues, deploying 550 engineers to key supplier locations, and reducing LEAP shop visit turnaround times by 15%.
  • GE Aerospace's updated guidance shows increased profit expectations and free cash flow, driven by strong aftermarket support and improved equipment profitability.
  • Despite the stock being expensive, I maintain a buy rating due to anticipated significant volume growth in engine shop visits and OEM sales in the coming years.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »

Boeing 737 Max

Matthieu Douhaire

In April 2023, I marked shares of GE Aerospace (NYSE:GE) a buy. The company was set to focus on aerospace and defense, which I believe has significant growth prospects ahead and would positively enhance the value of

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This article was written by

18.65K Followers

Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BA, EADSF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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