Jefferies Adjusts Price Target on GE Aerospace to $435 From $455, Keeps Buy Rating

GE Aerospace (GE) is acquiring Consolidated Precision Products (CPP) for $11.75 billion to address supply-chain bottlenecks. CPP, a major supplier of precision castings, generates about $2 billion in revenue annually and is critical for GE's engine production. GE aims to increase CPP's output and improve efficiency, though the deal's high cost and potential impact on non-GE customers remain concerns.

GE Vernova signed a contract with Egyptian Electricity Holding Company to extend the life of five gas turbines at power plants, adding 13-15 years of operation. The deal covers 1,250 MW capacity and runs from 2028 to 2035. GE Vernova also has a separate deal for upgrades at Banha and Nubaria plants. The company supplies 60 turbines in Egypt, totaling 10 GW of capacity.

GE Healthcare has appointed AT&T CFO Pascal Desroches to its board. The move is part of the company's strategy to strengthen its leadership team. Separately, MoffettNathanson adjusted its price target on AT&T to $23 from $24, maintaining a neutral rating.

GE Aerospace reports strong demand for CFM56 engine overhauls, with retirement rates lower than expected. The company projects 2,300-2,400 shop visits in 2026-2027, up from initial estimates. GE CFO Rahul Ghai cites sustained airline demand and life-limited parts replacements as drivers. The company anticipates double-digit service growth in 2027.

GE Aerospace is investing $225M to modernize its research center in Niskayuna, NY, with additional support from the State of New York and local authorities. The project aims to advance aviation technology, create 75 new jobs, and strengthen research capabilities. Governor Kathy Hochul and other officials praised the investment, highlighting its role in fostering innovation and economic development in the region.

GE Aerospace is investing $225 million to upgrade its Niskayuna Research Center, with $8.4 million in tax breaks from New York state and $5.3 million in incentives from Schenectady County. The project aims to modernize research and infrastructure, adding 75 jobs. Construction begins immediately, with minimal disruption expected.