Citi starts GE Aerospace ($GE) at Buy: A&D “megatrend” trade back in focus

Citi initiated coverage of GE Aerospace ($GE) with a Buy rating and a $386 price target. Citi also floated a bold bull-case: GE could become the first publicly traded aerospace & defense company to reach a $1 trillion market cap within about 5 years.

The call landed with a technical tailwind too: GE popped around 4% and moved back above its 50-day moving average, while the stock is described as forming a flat base with a buy point around 316.67.

Citi’s broader point: the entire A&D complex is being pulled by long-cycle “megatrends” across commercial aerospace, defense, shipbuilding, and space and they initiated or refreshed views across a wide list of names, including Buy ratings on $RTX and $BA as well.

WINNERS -

Jet engines + aero systems

Reason: Engine OEMs and systems providers benefit from higher flight hours, spares, and long-cycle demand.

$GE, $RTX

Aerospace parts + precision suppliers

Reason: Production ramps and aftermarket parts orders tend to lift key component makers.

$HWM, $HEI

Defense tech + prime contractors in the “rearm” narrative

Reason: Continued defense budgets and modernization can support order flow and sentiment.

$NOC, $LHX

LOSERS -

Airlines (cost pressure risk)

Reason: Strong engine/airframe demand can keep maintenance and lease costs firm.

$DAL, $UAL

Lower-conviction A&D names vs “top picks”

Reason: When a major bank highlights specific winners, capital can rotate away from the rest.

$LMT, $GD

Non-aero industrials (relative rotation risk)

Reason: Sector flows may favour A&D leaders over other industrial pockets.

$CAT, $DE

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