Susquehanna Adjusts Price Target on GE Vernova to $1,270 From $1,300

General Electric (GE) received UK government funding to expand its jet engine maintenance operations at the Prestwick site. The company plans to invest £27m to modernize the facility, securing around 1,000 jobs. This investment supports GE's aftermarket services and aligns with its broader aerospace strategy, though broader risks remain.

GE Vernova Hitachi Nuclear Energy (GVH) received a construction permit from the U.S. Nuclear Regulatory Commission for a BWRX-300 reactor at the Clinch River site in Tennessee. This is the first permit issued in the U.S. for this reactor type, marking a significant milestone for GVH, the Tennessee Valley Authority (TVA), and the U.S. nuclear industry. The permit follows an extensive review and demonstrates progress in advanced nuclear projects.

GE Aerospace (GE) agreed to acquire Consolidated Precision Products (CPP) for $11.75B to expand its casting capacity. GE's Q2 2026 revenue rose 21% to $13.3B, with adjusted EPS up 22% to $2.02. The company raised its full-year outlook, but margins slipped. GE trades at a premium, with a forward P/E of 38.90, and analysts expect 14.85% EPS growth in 2027.

GE Aerospace plans to increase its annual procurement spending in India to $400 million by 2030, up from $200 million in 2025, supported by expanding supplier networks and growing engine demand. The company's Pune facility has received additional capital for automation and workforce development. The expansion aligns with India's aviation sector growth, with over 3,200 engines scheduled for delivery in the next decade. An EY report estimates a $5.5 billion MRO market opportunity in India.

GE Aerospace plans to increase annual sourcing from India to $400 million by 2030, up from $200 million in 2025. The company has 17 major domestic partners and a manufacturing facility in Pune. It expects to deliver over 3,200 engines in the next 9-10 years, with a $5.5 billion MRO opportunity in India. IndiGo signed an agreement for 1,000 LEAP-1A engines in July 2026.

GE Aerospace plans a £63 million expansion of its Prestwick, Scotland facility, including £30 million from the company and £33 million from public funds. The investment aims to create 150 jobs over five years and increase capacity for engine overhauls, particularly for GEnx engines used on Boeing aircraft. The project is expected to be operational by Q1 2028, supported by government partners and Scottish Enterprise.