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Mergers & AcquisitionsMediumUpdated•Originally published 8 September 2026•Updated 8 September 2026•
2 min read

Jefferies Keeps GE at Buy With $455 Target After $11.75 Billion CPP Deal

Key Facts

1The acquisition agreement is valued at $11.75 billion, funded with $7 billion in cash and the remainder in new debt.
2Jefferies maintained its Buy rating and $455 price target on GE.
3GE expects the transaction to close in the second half of 2027, subject to approvals and customary conditions.

Jefferies maintained its Buy rating on GE and kept its price target at $455 after GE Aerospace signed an agreement to acquire Consolidated Precision Products (CPP) for $11.75 billion. The rating provides the investment angle, while the transaction itself remains the main valuation driver.

GE Aerospace will buy the company from Warburg Pincus and Berkshire Partners, financing the purchase with $7 billion in cash and the remainder in new debt. GE expects the transaction to close in the second half of 2027, subject to regulatory approvals and customary conditions, with no change to its current capital-allocation plans.

GE Aerospace expects the acquisition to add to adjusted earnings per share and free cash flow within the first 12 months, excluding one-time costs and deal-related amortization. The price represents about 18 times CPP's expected 2027 earnings before interest, taxes, depreciation and amortization (EBITDA) after projected net synergies, compared with about 26 times without them.

Jefferies offered a more detailed estimate, forecasting that the transaction will lift GE's 2028 earnings per share (EPS) by about 1.5%, partly on the assumption of $75 million in synergies that year. It also expects about $200 million in net synergies within 3 years, potentially rising to more than twice that amount within 6 years; these are analyst forecasts, not guaranteed outcomes.

CPP employs about 6,600 people across more than 20 facilities and has supplied GE Aerospace for more than 15 years. GE's investor presentation says about 70% of CPP's revenue comes from commercial and defense engines, underscoring its importance in the castings and engine-airfoil supply chain.

GE Aerospace projects that its airfoil demand will grow by more than 30% between 2026 and 2030. Owning CPP could give GE greater control over a critical supplier, but realizing the expected benefits will depend on industrial execution, transaction financing and regulatory clearance.

GE's last available close before the announcement was $337.12 on September 4, 2026, within a daily range of $332.24 to $337.21. Investors will next focus on the approval process, the cost of the new debt and evidence that projected synergies remain achievable before the expected closing in the second half of 2027.