"Daiwa's Neutral rating stems from high expectations priced into GE Aerospace, which leaves little margin for error, especially with risks from elevated jet fuel prices."
"GE Aerospace's Q4 2025 revenue reached $12.72 billion, exceeding estimates by 19.69%, and the company reported a full-year free cash flow of $7.694 billion."
"CEO H. Lawrence Culp Jr. expressed optimism for 2026, stating, 'We enter 2026 with solid momentum to build upon these results and are well positioned to create greater value for our customers.'"
"The stock trades at a forward P/E of 38.02, indicating a premium that necessitates consistent execution to meet market expectations."
Daiwa's Neutral rating on GE Aerospace reflects concerns over high expectations already priced into the stock, which limits potential upside. The stock has declined 12.70% this year and 19% in the past month, despite a 40% increase over the past year. Risks from elevated jet fuel prices could impact engine services revenue. The analyst consensus price target is significantly higher at $361.89, with 17 Buy ratings. GE Aerospace reported strong Q4 2025 results, with revenue of $12.72 billion and a backlog of $190 billion.
Read at 24/7 Wall St.
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