GE Aerospace (NYSE:GE) has reaffirmed its 2025 outlook despite a $500 million tariff-related cost headwind, prompting analysts at Bank of America to raise their price objective on the stock to $230 from $225 and reiterate a ‘Buy’ rating.
Describing GE as “the sanctuary stock,” analysts wrote: “While other companies appear to be caught in a tariff tidal wave, GE's proactive tariff mitigation strategy, market positioning, and operational strength have insulated them, in our view.”
The analysts attributed GE’s ability to absorb the tariffs to general conservatism in its initial outlook.
Analysts pointed to several cost-control mechanisms the company is currently using, including drawbacks, free trade zones, pass-through protection in long-term contracts, pricing measures, and operational improvements.
“GE was clear, they have the levers and they’re being pulled,” they wrote.
Bank of America expect GE to continue to deliver strong results in the second quarter, with 90% of spare parts orders already secured.
While noting potential risks in the second half related to travel demand and export restrictions, the analysts see GE as “the most capable among peers to handle the impact.”
They also remain confident in GE realizing low-double-digit growth for 2025.
“We reiterate our ‘Buy’ rating as we see GE being the name investors moor to while markets remain choppy,” they wrote.
Shares of GE traded up 0.7% at $199 in the early afternoon on Friday.