GE Aerospace's $11.75 Billion CPP Acquisition to Close in 2027 Amid Backlog Challenges
GE Aerospace announced its acquisition of Consolidated Precision Products (CPP) for $11.75 billion, aiming to address bottlenecks in turbine blade and vane casting production that are contributing to a growing services backlog and spare-parts delays. The deal is expected to close by the second half of 2027 but will only cover about a quarter of GE's airfoil needs, suggesting it won't immediately resolve capacity constraints. Despite analysts raising price targets significantly in response—pushing the mean target from $350.95 on June 30 to $401 by September 16—GE’s stock has fallen over the same period, dropping nearly 16% and widening the gap between analyst expectations and current pricing. The company's NTM P/E multiple also declined below its two-year average. CFO Rahul Ghai emphasized that CPP is a unique case rather than part of a broader vertical integration strategy, reinforcing concerns about how long it will take for tangible benefits to materialize.
Tickers: $GE
Topics: Aerospace Manufacturing Stock Implications