Latest news with #DouglasHarned
Yahoo
16-07-2025
- Business
- Yahoo
GE Aerospace Q2 Earnings Preview: What to Expect From Upcoming Report
July 16 - GE Aerospace (NYSE:GE) is set to unveil its second?quarter earnings on Thursday, July 17. The stock has climbed about 57% year?to?date amid strong demand for its commercial and defense engines. Wall Street forecasts earnings per share of $1.43, up 19.2% from a year ago. Revenue is expected to rise about 5.5% to $9.59 billion, compared with $9.09 billion in the prior?year quarter. Warning! GuruFocus has detected 7 Warning Sign with GE. Robust commercial engine orders, hefty defense contracts and a solid aftermarket services business underpin the upbeat outlook. The U.S. government's approval to resume jet?engine exports to China adds further tailwinds. Citi analyst Jason Gursky reiterated a Buy rating and raised his price target to $296. Bernstein's Douglas Harned also stays bullish with a $254 target after talks with GE, Safran (SAFRY) and Airbus (EADSF). He noted that LEAP engine deliveries ticked up in Q2 but remained modest at 21 units in June. GE has maintained its guidance for LEAP engine shipments to climb 15% to 20% in 2025. Options traders are bracing for a near?term swing of about 6% in either direction once results hit the tape. Based on the one year price targets offered by 15 analysts, the average target price for GE Aerospace is $260.27 with a high estimate of $300.00 and a low estimate of $196.11. The average target implies a downside of -1.66% from the current price of $264.67. Based on GuruFocus estimates, the estimated GF Value for GE Aerospace in one year is $147.69, suggesting a downside of -44.20% from the current price of $264.67. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
GE Aerospace Q2 Earnings Preview: What to Expect From Upcoming Report
July 16 - GE Aerospace (NYSE:GE) is set to unveil its second?quarter earnings on Thursday, July 17. The stock has climbed about 57% year?to?date amid strong demand for its commercial and defense engines. Wall Street forecasts earnings per share of $1.43, up 19.2% from a year ago. Revenue is expected to rise about 5.5% to $9.59 billion, compared with $9.09 billion in the prior?year quarter. Warning! GuruFocus has detected 7 Warning Sign with GE. Robust commercial engine orders, hefty defense contracts and a solid aftermarket services business underpin the upbeat outlook. The U.S. government's approval to resume jet?engine exports to China adds further tailwinds. Citi analyst Jason Gursky reiterated a Buy rating and raised his price target to $296. Bernstein's Douglas Harned also stays bullish with a $254 target after talks with GE, Safran (SAFRY) and Airbus (EADSF). He noted that LEAP engine deliveries ticked up in Q2 but remained modest at 21 units in June. GE has maintained its guidance for LEAP engine shipments to climb 15% to 20% in 2025. Options traders are bracing for a near?term swing of about 6% in either direction once results hit the tape. Based on the one year price targets offered by 15 analysts, the average target price for GE Aerospace is $260.27 with a high estimate of $300.00 and a low estimate of $196.11. The average target implies a downside of -1.66% from the current price of $264.67. Based on GuruFocus estimates, the estimated GF Value for GE Aerospace in one year is $147.69, suggesting a downside of -44.20% from the current price of $264.67. This article first appeared on GuruFocus. Sign in to access your portfolio
CNBC
23-06-2025
- Business
- CNBC
Defense stocks were already outperforming. How the Iran conflict changes their outlook
Defense stocks moved higher again on Monday as investors reacted to the continued escalation of the conflict in the Middle East, which brings with it the potential for long-term changes in military spending. Bernstein analyst Douglas Harned said in a note to clients that this could prove to be an inflection point for the defense sector but it is still too soon to tell. "Events such as this have historically led to significant changes in defense spending and for the trajectory of defense stocks. But, the ultimate paths for the geopolitical environment and scale of military threats determine the outcome," Harned said. The behavior of the largest ETF tracking the sector could be a sign that investors are not fully betting on a widespread, long-term conflict. Overall, the iShares U.S. Aerospace and Defense ETF (ITA) has gained almost 17% since the start of May, with just nine down days compared to 27 up days, and is well ahead of the broader market year to date. However, the fund is also little changed since its previous record closing high June 9. ITA 3M mountain This major defense sector ETF has not made a new high in two weeks. Other major funds like the Invesco Aerospace & Defense ETF (PPA) and the SPDR S & P Aerospace Defense ETF (XAR) show similar patterns. Harned suggested that the idea of a weakened Iran could be behind some of the recent stalling of the rally in defense stocks, but said there is risk that the perceived danger in the region increases again. "We could see ongoing US involvement (despite administration statements to the contrary) or aggressive efforts to fill the vacuum by Russia or China. These outcomes could lead to prolonged instability and rising global defense spending - in other words, the extended escalation scenario above. Much is left to play out here," Harned wrote. The Bernstein note was published before Iran retaliated with a strike on a U.S. military base in Qatar. Another factor to keep in mind that it is not just spending by the U.S. military that can boost this sector. Jefferies analyst Sheila Kahyaoglu pointed out in a note to clients that there could a reminder of that at this week's NATO summit. "NATO is expected to commit to 3.5% of GDP on defense at the upcoming summit from 2% today, which represents $150BB+/yr of incremental procurement, of which historically has been 2/3rds to US products," the Jefferies note said. To be sure, trying to sort through the daily headlines of this conflict could make less investment sense than pulling back to see that defense stocks have been long-term winners. "Over the two and a half-year period from the start of 2023 through June 20, 2025 the three aerospace and defense ETFs showed greater cumulative price appreciation compared to a fund that replicates the S & P 500. The aerospace and defense stocks also outperformed the S & P 500 fund over 1-, 3-, 5 and 10-year periods," Oppenheimer chief investment strategist John Stoltzfus said in a note to clients. — CNBC's Michael Bloom contributed reporting.
Yahoo
21-05-2025
- Business
- Yahoo
Bernstein Maintains Outperform Rating on Boeing (BA), Lifts PT
On May 20, Bernstein lifted the price target on The Boeing Company (NYSE:BA) stock to $249 from $218 and maintained an Outperform rating. Analyst Douglas Harned raised the price target following the company's recent developments. The major move was China resuming airline delivery of Boeing planes. The analyst mentioned that Boeing has already received new widebody orders as things get better in China. The easing of trade deals between the U.S. and China also supports Boeing's presence in China. A Boeing 737 aircrafts parked in an airport terminal with passengers awaiting to board. Harned also highlighted the support for defense programs after Trump's recent deals in the Middle East. A large number of orders for Boeing jets from the Middle East add to the company's outlook. The analyst argues that there is still upside potential for BA stock. The Boeing Company (NYSE:BA), along with its subsidiaries, designs, manufactures, and sells commercial jetliners, military aircraft, and missile defense, among other offerings. The company operates through three segments, including Commercial Airplanes, Global Services, and Defense, Space & Security. While we acknowledge the potential of BA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BA and that has 100x upside potential, check out our report about this cheapest AI stock. Read Next: and . Disclosure. None. Sign in to access your portfolio
Business Insider
30-04-2025
- Business
- Business Insider
‘Load Up,' Says Douglas Harned About Boeing Stock
Back in 2023, Boeing (NYSE:BA) appeared to be well-positioned to put recent woes behind it. The company was recovering from the aftermath of the 737 MAX crashes and looked on track to generate $10 billion in free cash flow by 2025. However, that outlook changed dramatically in January 2024, when a door panel detached mid-flight from an Alaska Airlines 737 MAX 9. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. While initially thought to be an isolated incident, subsequent investigations – amid intense FAA scrutiny due to Boeing's past MAX issues – revealed deeper, systemic problems within Boeing's manufacturing processes. Other challenges included 787 production problems, certification delays for several models, and major leadership changes. Additionally, in the summer of 2024, supply chain issues hampered production of the 737 and 787, followed by a strike by the Machinists Union in September that shut down Boeing's Puget Sound operations. The strike did not come out of the blue, but nevertheless, Boeing was poorly prepared. The company's challenges were made worse by ongoing underperformance in its Defense & Space Systems (BDS) division, which recorded financial charges in every quarter of 2022, 2023, and 2024. Yet, despite the storm clouds, Bernstein analyst Douglas Harned sees a silver lining. He argues that now might actually be the perfect moment for investors to swoop in and grab Boeing shares while sentiment remains grounded. 'Boeing is now making the progress it needed for the growth trajectory we expected before the Alaska door plug accident in January 2024,' the analyst said. 'While we cannot assume all risks are gone, after high FAA scrutiny, BCA should be on a much firmer path than in 2023.' Harned continues to expect 737 MAX production will reach 38 aircraft per month by July – right in line with management's projections from the Q1 earnings call. Encouragingly, the updated guidance for the 787 exceeded his expectations, with production expected to climb to 7 per month before year-end, thanks to resolved quality and heat exchanger supply issues. As for the 737, Boeing CEO Larry Ortberg floated the possibility of ramping up to 42 per month by year-end, pending FAA cooperation. Harned, taking a more cautious view, assumes that milestone will slip to January. The analyst is also projecting steady production increases to 47, 52, and eventually 57 per month, roughly every nine months, even though Boeing's own targets are more aggressive. 'But,' Harned goes on to add, 'we prefer to be conservative, as Boeing has not done such rapid rate breaks before. All of this is against a backdrop of a duopoly with demand that should outstrip supply through the decade.' Meanwhile, after years of BDS setbacks, there were no new financial charges, marking a positive shift. More significantly, Boeing's F-47 contract win has revitalized its defense division. On the downside, there are tariffs, higher BCA costs, and lingering 787 interior issues to consider. Certification risk also remains for the MAX-7 and MAX-10, and halted China deliveries are a headwind, though the planes could be remarketed. All told, the positives outweigh the negatives, and that merits an upgrade. Harned's rating on Boeing shares goes from Market Perform (i.e., Neutral) to Outperform (i.e., Buy), while his price target also goes from $181 to $218, suggesting shares will gain ~20% over the coming months. (To watch Harned's track record, click here) Elsewhere on the Street, Boeing stock receives an additional 14 Buys, 3 Holds and 1 Sell, for a Moderate Buy consensus rating. Going by the $200.47 average price target, the shares will appreciate by 10% over the coming months. (See Boeing stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
