New York, February 22, 2026, 14:25 (EST) — The market has closed.
- GE Aerospace jumped 2.5% to $343.22 on Friday, with Morgan Stanley initiating coverage at Overweight and putting a $425 target on the stock.
- The bank isn’t just talking up new engine deliveries; their angle is aftermarket cash flow and pricing muscle.
- U.S. producer price data arrives Feb. 27. After that, GE is set to webcast first-quarter results on April 21.
Shares of GE Aerospace climbed 2.5% Friday, closing at $343.22, following Morgan Stanley’s launch of coverage with an Overweight rating and a $425 target. Analysts at the firm described the jet-engine manufacturer as “best in class” and highlighted its “deep competitive moat.” U.S. markets remain closed on Sunday. TipRanks
Timing counts here. Investors are piling into engine makers on the strength of their aftermarket business—the parts and maintenance revenue that sticks around long after engines leave the factory. That steady stream doesn’t hinge on fresh plane deliveries.
Rates back under scrutiny. December’s U.S. core PCE inflation notched a 0.4% increase, landing at 3.0% year-on-year—topping economists’ estimates, Reuters said Friday. Barclays economist Pooja Sriram flagged the usual volatility, citing swings in services.
Morgan Stanley set its $425 price target based on projected 2028 free cash flow per share of $10.85, as reported by Investing.com. The analysts also sketched out scenarios: a bull case at $615, a bear case down at $230. Their outlook puts free cash flow potentially hitting $13.5 billion by 2030. According to the bank, GE’s shares trade at roughly a 30% discount to top commercial aerospace names using 2028 price-to-free-cash-flow metrics.
GE’s CFM International partnership with Safran, which battles Pratt & Whitney of RTX for Airbus narrowbody engine orders, picked up a win: American Airlines on Thursday locked in CFM’s LEAP-1A engines for its upcoming A321neo planes. The deal covers extended maintenance support as well.
GE points to that service stream as an area of ongoing investment. CEO Larry Culp, speaking last month, stood by the company’s engine pricing and noted GE pours roughly $3 billion annually into research and development. “We invest heavily in technology,” Culp told Reuters. Reuters
The broader tape held steady. The S&P 500 ETF added roughly 0.7% Friday. Boeing, though, edged down about 0.7%.
The setup isn’t one-sided. Should airframe production slow, or if parts become scarce or shop space tightens, revenue and cash might get delayed. Persistent inflation could also keep a lid on industrial valuations.
Producer prices are on deck, with the Labor Department set to release January’s Producer Price Index on February 27 at 8:30 a.m. Eastern. For markets, it’s an early gauge of pipeline inflation.
The Bureau of Economic Analysis has the next release for personal income and outlays, including the latest PCE inflation figures for January, lined up for March 13. Details are on their schedule.
GE Aerospace shareholders are eyeing April 21, the date set for the company’s first-quarter results webcast. Management’s commentary on services growth, repair capacity, and free cash flow will be in focus.
