Strong Demand Fundamentals Provide Top and Bottom-Line Tailwinds; Reiterate OW

研报英文原文证据摘录

Strong Demand Fundamentals Provide Top and Bottom-Line Tailwinds; Reiterate OW

Idea

July 17, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMGE Aerospace | North America Kristine T Liwag

Equity Analyst

Strong Demand Fundamentals Kristine.Liwag@morganstanley.comJason T Holcomb +1 212 761-2980

Research Associate

Jason.Holcomb@morganstanley.com +1 212 761-5592

Provide Top and Bottom-Line Justin M Lang

Justin.Lang@morganstanley.com +1 212 761-6251

Tailwinds; Reiterate OW Gabrielle Knafelman

Gaby.Knafelman@morganstanley.com +1 212 761-4838

Strong beat-and-raise 2Q26 results, with structural demand Shaina C Zuber

tailwinds from install engine growth and aging in-service fleet, Research Associate

Shaina.Zuber@morganstanley.com +1 212 761-6353

and additional upside from abatement of margin headwinds. We

leave our PT unchanged at $400 as we update our model and GE Aerospace (GE.N, GE US)

Aerospace | United States of America

mark-to-market valuation; remain OW.

Stock Rating Overweight

Industry View Attractive

Key Takeaways PriceShr price,targetclose (Jul 16, 2026) $400.00$345.73

Mkt cap, curr (mm) $361,131

Strong beat-and-raise quarter demonstrates that the growth acceleration story 52-Week Range $382.80-254.82

remains intact. Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

Demand fundamentals strong due to a growing engine install base, continuing EPS ($)** 6.38 7.85 9.12 10.72

Prior EPS ($)** - 7.44 8.93 10.51

CFM56 need, and an aging in-service fleet. P/E 45.9 42.2 57.4 45.8

EPS ($)§ - 7.57 8.73 9.92

Significant margin opportunity as idiosyncratic factors around install engine Div yld (%) 0.4 0.5 0.6 0.7

growth, LEAP, and GE9X abate, with ~315bps of margin expansion in CES ’27-’30.

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework