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Buy this aerospace stock that Bank of America says is insulated from tariffs

Buy this aerospace stock that Bank of America says is insulated from tariffs

CNBC25-04-2025
GE Aerospace is in a league of its own when it comes to navigating tariff concerns, according to Bank of America. "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," analyst Ronald Epstein wrote in a Friday note. GE Aerospace makes engines for both Boeing and Airbus planes. BofA reiterated a buy rating on the jet and turboprop engine provider, alongside a $230 per share price target. The firm's forecast implies about 17% upside from Thursday's $197.41 close. GE YTD mountain GE Aerospace stock in 2025. Tariffs have been a lingering headwind for investors for much of April, and have also been responsible for much of the volatility seen on Wall Street. Stocks are still contending with macroeconomic concerns tied to the wide ranging tariffs, although President Donald Trump has tamped down his previously incendiary rhetoric on global trading partners. The analyst noted that GE's full-year outlook includes an expected $500 million cost headwind due to tariffs, which he says is an encouraging sign that the company has both clear visibility into the impact of the duties as well as a plan to offset the hit with cost controls and pricing action. "GE's ability to absorb the tariffs and rising costs without compromising their outlook set the company apart from peers," Epstein said. "While in part we link some of the absorption to general conservatism in the initial outlook – GE was clear, they have the levers and they're being pulled." Some of those additional levers, Epstein said, include utilizing free-trade zones as well as operational improvements. The aerospace industry is heavily reliant on a functioning global supply chain, and has benefited from largely duty free trade for roughly 50 years . GE Aerospace CEO Larry Culp told investors on its Tuesday earnings call that he recently met with Trump to discuss the trade surplus for the U.S. aerospace sector. Shares have advanced nearly 20% in 2025, while the S & P 500 has lost 7%. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
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