Wall Street Split on GE Aerospace as Daiwa Sets $301 Target and Flags High Expectations

Core Viewpoint - Daiwa initiated coverage of GE Aerospace with a Neutral rating and a price target of $301, indicating strong fundamentals but high expectations already priced into the stock, leaving little margin for error [2][5]. Company Performance - GE Aerospace's Q4 2025 revenue reached $12.72 billion, exceeding estimates by 19.69%, with a year-over-year growth of 28% [7]. - The full-year 2025 free cash flow was $7.694 billion, more than doubling year-over-year, and the company's backlog is approximately $190 billion [7]. Analyst Insights - The analyst consensus price target for GE Aerospace is $361.89, with 17 analysts rating the stock a Buy, making Daiwa's Neutral rating an outlier [6]. - Daiwa highlights risks from elevated jet fuel prices that could impact flight hours and airline utilization, posing a threat to GE's engine services revenue [5]. Market Context - GE stock has declined by 12.70% year-to-date and is down over 19% in the past month, currently trading at $273.25, which is below Daiwa's target and the consensus [3][9]. - The forward P/E ratio for GE is 38.02, indicating a premium that necessitates consistent execution to justify the valuation [6][10].