GE Aerospace: Stand-Alone Jet Engine Maker Slightly Undervalued as Secular Demand Approaches

We are reinitiating coverage of GE Aerospace as a stand-alone business following the spinoff of General Electric’s power and wind turbine business as GE Vernova. We assign the jet engine maker a wide economic moat rating based on the technical complexity of its products and the specialized know-how it has to design, build, and service them, as well as engines' very long product cycles and some service contracts that imbue switching costs for GE Aerospace’s customers.