Tariff-Proof Takeoff? B Of A Highlights GE Aerospace's Strong Defense Against Import Costs

B Of A Securities analyst Ronald J. Epstein raised the price forecast for GE Aerospace (NYSE:GE) from $225 to $230 while retaining a Buy rating.

On Tuesday, the company reported first-quarter 2025 adjusted revenue growth of $9 billion, in line with the consensus estimate of $9 billion, and adjusted EPS of $1.49 (+60% year-over-year), exceeding the consensus estimate of $1.26.

GE Aerospace expects adjusted revenue growth in the low double digits and adjusted EPS of $5.10 – 5.45 vs. the $5.10 consensus.

The analyst writes that, unlike companies vulnerable to a surge in tariffs, General Electric appears well-protected thanks to proactive mitigation efforts, its market strategy, and operational resilience.

Also Read: GE Aerospace Jumps 4% As Soaring Margins, Robust Orders Offset Tariff Concerns

Although the company anticipates a $500 million tariff-related cost, it has maintained its guidance, notes the analyst.

Epstein continues to expect low-double-digit growth for General Electric in 2025.

The analyst says that General Electric’s strong aftermarket, with 90% of second-quarter spare parts orders already in hand, should provide a buffer against margin pressure from the anticipated acceleration in Original Equipment (OE) business.

While Epstein doesn’t foresee significant headwinds in the second half of 2025, the broader risk of softening travel demand could be a headwind for GE.

Further weakening of the macro environment affecting travel or additional aerospace trade restrictions could pose a headwind to GE’s commercial sector, Epstein added.

He raised EPS estimates to $5.45 (from $5.40) for 2025, to $6.65 (from $6.60) for 2026, and to $7.65 (from $7.60) for 2027.

Investors can gain exposure to the stock through the TCW Transform Systems ETF (NYSE: PWRD) and the iShares U.S. Aerospace & Defense ETF (BATS:ITA).

Price Action: GE shares are up 0.52% at $198.44 at the last check Friday.

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