GE Aerospace (NYSE:GE) delivered another quarter of powerful growth, with surging demand for jet engines and defense systems underscoring its dominance in the aviation rebound.
Bolstered by double-digit revenue gains across key segments and ongoing investments in next-generation propulsion technology, the company’s momentum signals a clear runway for sustained expansion through 2026 and beyond.
Bank of America Securities (BofA) analyst Ronald J. Epstein reiterated a Buy rating for GE Aerospace and raised the price forecast to $365 from $310 following the company’s strong third-quarter earnings.
Also Read: GE Aerospace Raises 2025 Outlook On Strong Engine Demand, Higher Cash Flow
Epstein’s valuation is based on an unchanged $1.7x relative Price-to-Free Cash Flow (P/FCF) multiple applied to the firm’s 2026 estimates.
Epstein cites GE Aerospace as a “best-in-class operator and innovator” that is prepared for continuous growth through its 2028 targets.
The third-quarter 2025 earnings outperformed expectations, driven by revenue increases exceeding 25% in both Commercial Engines & Services (CES) and Defense & Propulsion Tech (DPT).
Commercial Aviation Aftermarket Poised for Double-Digit Growth
The analyst forecasts the CES growth algorithm will remain strong, predicting that a release of pent-up demand will enable double-digit shop visit growth in 2026. He also anticipates that the work scope for these shop visits will increase meaningfully.
Epstein noted the company’s $1 billion in supply chain investments as a key factor enabling better shop visit throughput. He further highlights GE’s innovation, including the RISE program for next-generation engines.
Defense Segment Underappreciated, Offers Growth
Epstein views GE’s defense exposure as underappreciated, noting that DPT is well-positioned and that the company’s commercial expertise will be effectively transferred to the defense sector.
Due to the enduring strength in the aftermarket business and the ramping of the original equipment (OE) business, Epstein increased his adjusted EPS estimates. He now projects 2025 EPS at $6.20 (up from $5.80), 2026 EPS at $7.15 (up from $7.05), and 2027 EPS at $8.30 (up from $8.05).
Other Analysts Update GE Aerospace Outlook
In addition to the BofA coverage, other analysts have also updated their outlook on GE Aerospace. JP Morgan analyst Seth Seifman maintains an Overweight rating and raised his price forecast from $275 to $325.
UBS analyst Gavin Parsons maintains a Buy rating and raised his price forecast from $344 to $366. Conversely, RBC Capital analyst Ken Herbert maintains an Outperform rating, and his $340 price forecast remains unchanged.
Price Action: GE shares were trading higher by 2.03% to $310.03 at last check Monday.
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