RBC Capital maintains Outperform rating on GE Aerospace, $375 price target

GE Aerospace reported record Q3 earnings of $2.25 per share, up 36% YoY, and raised its 2026 guidance. Despite strong results, shares fell due to valuation concerns. The company benefits from commercial engine demand and partnerships with Boeing and Airbus. GE's stock is down 3% YTD but up 180% over three years.

RBC lowered its price target on GE Aerospace (NYSE:GE) to $375 from $400, citing 2027 growth concerns. The company reported Q3 adjusted EPS of $2.25, beating estimates, and raised 2026 guidance. Revenue grew 20% over the last year. Analysts have mixed views on its valuation and future performance.

GE Aerospace raised its 2026 financial outlook, expecting 19-20% adjusted revenue growth and operating profit of $10.9-$11B. Q3 adjusted EPS of $2.25 beat estimates. Management cited strong services demand and backlog, despite fuel cost pressures. GE9X production costs and parts shortages were discussed. The company also highlighted defense contract wins and expansion plans.

RTX, Northrop Grumman, and GE Aerospace reported Q3 earnings, raising full-year guidance. RTX reported $25B sales, $2.26 adjusted EPS, and a $340B backlog. Northrop Grumman reported $11.1B sales, $7.89 EPS, and a $109.6B backlog. GE Aerospace reported $19B orders, $13.3B revenue, and $2.25 EPS. Lockheed Martin and L3Harris are set to report soon. NATO and U.S. defense spending commitments support sector growth.

GE Aerospace (GE) shares fell 4% despite strong Q3 results, with adjusted earnings of $2.25 per share and revenue of $13.29 billion, both above expectations. The company raised its 2026 earnings forecast but signaled a softer Q4 and higher 2027 costs, causing investor concern. The stock is trading at $300, below its 52-week high of $389 and price target of $391.

RBC Capital lowered its price target on GE Aerospace from $400 to $375 but maintained an Outperform rating. The adjustment follows a similar move by Susquehanna, which reduced its target to $400 from $430. GE Aerospace's stock closed at $299.87, down 3.67%.