Seaport Research Partners launched coverage of GE Aerospace, assigning a Buy rating and setting a $375 price target. In its initiation note the firm said the recent slide in sentiment around the company offers a buying window for investors focused on a prolonged aviation aftermarket expansion.
Seaport characterized market sentiment toward GE Aerospace as having shifted to "neutral to negative," even though the companys fundamentals remain solid. The brokerage pointed out the stock is down about 1.7% year-to-date, while the S&P 500 has gained more than 9% over the same period.
Analyst Richard Safran argued that concerns the aerospace aftermarket cycle is close to a peak are premature. Safran said airline operators are likely to keep older aircraft flying for longer if production increases at The Boeing Company and Airbus continue to trail demand, a dynamic that, Seaport said, should support GEs profitable maintenance and spare-parts business well into the next decade.
On the aftermarket outlook, Seaport forecast revenue growth of above 10% annually through 2030, which the firm noted exceeds Wall Streets roughly 9% expectation for the same period. Seaport also described GE as being in the "early innings" of a long original-equipment production cycle that it believes has not yet been fully reflected in the share price.
The brokerage highlighted GEs defense business as an additional growth lever. Citing rising geopolitical tensions and increases in military aircraft production, Seaport said defense demand could contribute to the companys expansion. The note specifically mentioned that higher operational tempos tied to the Iran conflict could lift near-term aftermarket demand, while longer-term defense production programs may underpin sustained growth.
Seaport provided multi-year estimates for earnings and cash flow that sit above consensus. The firm projected adjusted earnings per share of $7.55 for 2026, $8.67 for 2027 and $10.25 for 2028; it noted the 2028 figure is above the consensus estimate of $9.80. On cash flow, Seaport estimated 2028 free cash flow per share of $10.90 versus a consensus figure near $10.07.
The research note pointed to GEs significant research and development investment as a competitive advantage, citing roughly $1.58 billion spent on R&D in 2025. Seaport said that spending helps to maintain GEs position versus competitors named in the note, including RTX Corporation and Rolls-Royce Holdings.
Sector and market implications
- A sustained aerospace aftermarket would primarily impact the aviation parts and MRO (maintenance, repair and overhaul) segments.
- Stronger defense demand could influence aerospace defense contractors and related supply chains.
- Broader equity market comparisons matter: Seaport contrasted GEs YTD performance with the S&P 500s gains to underscore valuation and sentiment dynamics.
What investors should know
- Seaport views current weakness in the shares as an opportunity to buy exposure to a potentially long-lasting aftermarket cycle and expanding original-equipment production.
- The firm expects both earnings and free cash flow per share to trend above current consensus estimates through 2028.
- R&D investment is cited as a strategic moat that helps GE compete with peers in aircraft engines and related services.