Key takeaways

  • Jefferies analyst cut the price target for GE Aerospace, yet it still implies significant upside potential for the stock.
  • Despite beating analyst forecasts with strong revenue, operating profit, and new orders, GE's stock experienced a decline post-earnings report.
  • GE raised its 2026 financial outlook for operating profit, earnings per share, and free cash flow, driven by robust demand for engine services.

GE (NYSE: GE) shares traded at $285.64 when Jefferies analyst Sheila Kahyaoglu cut her price target for GE Aerospace to $425 from $435. The new target still implies about 48.8% upside from that share price. GE Aerospace makes jet engines and earns revenue from servicing them. Its customers include commercial airlines and defense operators.

The target cut follows a drop in the stock after GE reports earnings. Shares fall for a third straight day, declining 2.5% by 11:40 a.m. ET on October 23 and bringing the weekly loss to nearly 9%, as highlighted by The Motley Fool.

The decline comes despite results above analysts’ forecasts. GE earns $2.25 per share on $13.3 billion in sales. Revenue rises 16% from a year earlier, operating profit climbs 30% to $3 billion, and new orders grow 49%. Bernstein SocGen Group analyst Douglas Harned also lowers his price target but keeps a buy recommendation, citing strong engine demand.

GE raises its 2026 outlook to operating profit of $10.9 billion–$11 billion, earnings per share of $8.00–$8.10, and free cash flow of $9.1 billion–$9.4 billion. Free cash flow is the cash left after spending on operations and equipment. Strong demand for engine services supports the outlook, as highlighted by Seeking Alpha.