RBC just gave GE a higher ceiling

The upgrade before the earnings confetti

RBC Capital Markets went ahead and swatted GE Aerospace’s price target higher to $400 from $355, while keeping its Outperform rating intact. Translation: the analyst thinks the plane-maker’s story still has more runway, even after a pretty solid run.

Why the bulls are still circling

Ken Herbert’s note leans hard on the idea that GE’s aftermarket and services business keeps doing the heavy lifting. Capacity constraints, legacy engine usage, and strong airline demand are all acting like little force fields around service spending, which is the kind of boring-but-beautiful revenue investors love.

RBC is also modeling:

• about 19% services growth in the second quarter
• about 18% growth for the full year
• roughly $500 million of upside to 2026 adjusted EBIT guidance

That’s a pretty cheerful backdrop going into the company’s second-quarter results on Thursday.

The catch: the bar is already pretty high

Here’s the awkward part. RBC also basically admitted the earnings print may not be the fireworks show. The stock has already climbed, expectations are elevated, and investors may be more focused on 2027 — where the comps get tougher and services growth could cool off a bit.

So yes, GE Aerospace still looks healthy. But the market may be asking a less romantic question now: not “is business good?” but “how long can this pace keep going?”

Big picture: GE is still playing the long game with aircraft engines, services, and a very patient backlog story. The bull case is alive — it just might be getting more expensive by the week.