GE and Howmet Poised for Strong Earnings as Aerospace Sector Stays Resilient: Analyst

Core Insights - Deutsche Bank analyst Scott Deuschle has adjusted price targets and earnings forecasts for major aerospace companies, indicating strong resilience against market challenges and potential for significant earnings beats [1] Group 1: GE Aerospace - The price target for GE Aerospace has been raised to $235 from $212, maintaining a Buy rating [1] - Expected EPS beat of 9% in the base case and 15% in the blue sky scenario for Q3, with a potential 7% EBIT rise if the blue sky scenario occurs [2] - Anticipation of increased free cash flow (FCF) guidance due to strong CSA collections from the summer flying season [2] Group 2: Howmet Aerospace Inc. - The price target for Howmet Aerospace has been increased to $125 from $106, while maintaining a Buy rating [3] - Base case estimates third-quarter EPS at $0.68, exceeding the Street's estimate of $0.66, with a projected 2% midpoint guidance increase [3] - Upside drivers include effective pricing strategies and strong execution, leading to shipments above long-term agreement caps [4] Group 3: Boeing Company - The price target for Boeing has been lowered to $195 from $225, while maintaining a Buy rating [4] - Anticipated third-quarter free cash flow burn of ($4.0 billion), increased from a previous estimate of ($2.4 billion), due to strike impacts and cash pressures in the Defense segment [5] - Forecast includes a $1 billion EBIT loss at Boeing Defense Systems and a $1.6 billion loss at Boeing Commercial Airplanes [5][6]