New York, Feb 20, 2026, 15:06 EST — Regular session
- GE Aerospace shares pushed higher on Friday, topping gains in a stronger broader market.
- Morgan Stanley kicked off coverage, tagging the stock with an Overweight and setting a price target at $425.
- American Airlines has extended its CFM LEAP-1A engine and maintenance agreement, covering upcoming A321neo aircraft.
GE Aerospace (GE.N) climbed about 2% to $341.50 as of 3:06 p.m. EST Friday, easily ahead of the S&P 500’s roughly 0.5% move.
Shares moved higher after fresh support on Wall Street and news of an airline engine development, keeping GE’s lucrative services business in focus.
This is the aftermarket: repairs, overhauls, spare parts—the side of the business where engines keep pulling in cash long after that first sale. Investors are counting on it, especially now, with airlines squeezing more life from their fleets and maintenance slots still tough to lock down.
Morgan Stanley has started coverage on GE Aerospace, setting an Overweight rating and a $425 price target. Analyst Kristine Liwag pointed out that the market isn’t fully appreciating GE’s long-term free cash flow—cash left after capital spending—or its grip on service pricing. The bank’s call uses an estimate of $10.85 per share in free cash flow for 2028 and slaps on a 39x multiple.
American Airlines (AAL.O) and CFM International — the GE Aerospace and Safran joint venture — said Thursday they’re sticking with CFM LEAP-1A engines for upcoming Airbus A321neo deliveries, locked in with long-term maintenance. American already flies 84 A321neo and 5 A321XLR jets, and the backlog stretches to 120 more A321neo and 35 A321XLR aircraft through 2032. Options for another 116 Airbus A320neo-family planes remain on the table. CEO Robert Isom called the partnership “exciting” as new A321neo jets arrive, while GE boss Larry Culp said he’s “proud to be under wing powering” the airline’s next-generation fleet. GE Aerospace
For GE, the math isn’t complicated. Selling the engine just gets things rolling; the real money comes down the line, with airlines shelling out for replacement parts and maintenance stops. Those ongoing payments? The market typically values them more than the initial build itself.
Peers didn’t move in unison. RTX (RTX.N) slipped roughly 0.5%, with its Pratt & Whitney arm vying in the narrowbody engine segment.
The upside scenario carries its own risks—anything from softer travel demand to sluggish repair throughput could upset the outlook. Morgan Stanley’s spread is striking: a bull case at $615, bear at $230. The message is clear, long-term cash flows can swing sharply if service volumes or pricing fall short.
GE Aerospace reports first-quarter 2026 results on April 21. Investors will tune in for fresh details on engine shipments, the latest on service pricing, and any news about cash returns.
