Bank of America analyst Ronald Epstein continues to see further upside in GE Aerospace (NYSE: GE) even though the Boston headquartered firm has already rallied some 20% since early April.
Epstein recommends buying GE shares at current levels as they’re exceptionally positioned to weather the tariffs-related macroeconomic uncertainty in 2025.
In a recent note to clients, the analyst reiterated his “buy” rating on GE Aerospace stock that he’s convinced could hit $230 by the end of this year.
Epstein’s price target translates to another 15% upside from here.
Epstein’s bullish view on GE Aerospace stock
GE Aerospace is the leading supplier of engines for both of the world’s largest aeroplane manufacturers: Boeing and Airbus.
BofA is positive on GE shares as its “proactive tariff mitigation strategy, market positioning, and operational strength have insulated them” from the potential impact of Trump tariffs.
Ronald Epstein likes GE for the strength of its financials as well. In Q1, the NYSE-listed firm earned $1.49 a share on $9.94 billion in revenue.
Analysts, in comparison, had called for $1.26 a share and $9.77 billion, respectively. A 0.73% dividend yield makes GE Aerospace stock all the more exciting to own in 2025.
GE offers visibility into the impact of tariffs
Despite tariffs and the related macro uncertainty, GE Aerospace reiterated its earnings guidance for the full year last week.
“GE’s ability to absorb the tariffs and rising costs without compromising their outlook set the company apart from peers,” the Bank of America analyst wrote in his latest report.
At the time, the multinational said it expects a $500 million cost headwind from tariffs, which Epstein called encouraging in his research note as it signals clear visibility into the potential impact of new levies.
Plus, GE shares are currently going for about 32 times their estimated earnings for 2025 – a valuation that he finds attractive relative to its industry peers.
How GE Aerospace plans on navigating Trump tariffs
BofA remains constructive on GE Aerospace also because its management plans on resorting to cost controls and pricing actions to offset the potential impact of tariffs.
“GE’s ability to absorb the tariffs and rising costs without compromising its outlook set the company apart from peers,” Ronald Epstein told clients in his research note, adding its management is pulling all levers at its disposal to navigate Trump tariffs.
For the full year, GE continues to see per-share earnings of $5.10 to $5.45 on an adjusted basis.
The aviation and aerospace giant expects its adjusted revenue to increase by a low double-digit percentage range in 2025.
Note that GE Aerospace has a sizable share repurchase programme in place as well.
It is committed to buying back up to $7 billion worth of its shares this year.
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