Mar Vista Says GE Aerospace Weakness Reflects Near-Term Fears
The investment firm said it saw no meaningful operating deterioration at GE Aerospace despite concerns about fuel costs and aftermarket demand.
Key takeaways
- Mar Vista said GE Aerospace and TransDigm underperformed during a broad commercial aerospace aftermarket sell-off.
- The firm said it had not seen meaningful deterioration in GE Aerospace's operating performance.
GE Aerospace and TransDigm underperformed in the third quarter amid a broad sell-off in commercial aerospace aftermarket companies, Mar Vista Investment Partners said in its quarterly investor letter.
Mar Vista said higher crude oil prices raised jet fuel costs and added pressure to airlines. The firm cited investor concerns that airlines could cut less profitable routes, reducing demand for maintenance and replacement parts.
The firm said it had not seen meaningful deterioration in GE Aerospace’s or TransDigm’s operating performance. It characterized the weakness as a response to near-term uncertainty and said it believes the long-term air travel growth trend of about 5% annually remains intact.
GE Aerospace closed at $305.62 on Oct. 8, according to the article.
This article was produced with the help of AI technology. Source: Yahoo Finance
