Dollar General Surprises to the Upside

Susquehanna analyst Charles Minervino started coverage of airplane engine manufacturer GE Aerospace (NYSE: GE) with a positive rating and a $350 price target this morning, implying he sees nearly 20% profit potential in the stock over the next 12 months.

“GE Aerospace is at the center of the Aerospace & Defense industry,” argues Minervino, “providing propulsion technology and advanced engine systems that power many of the world’s commercial and military aircraft. Between its own engines and those from its CFM International (GE-Safran 50-50) joint venture, GE powers three out of every four commercial engine flights globally.”

Furthermore, GE boasts “a vast installed base of 45,000+ commercial engines and 25,000+ military engines that are growing at mid-single digits.” Representing 65% of GE’s total sales, this fact alone, argues the analyst, should power “robust” revenue growth through the end of the decade.

Investors are responding to Susquehanna’s endorsement by bidding up GE stock 1.4%.

Investors got an update from Salesforce (NYSE: CRM) last night as well. Salesforce beat Q3 earnings by 39 cents, reporting profit of $3.25 per share. Revenue edged out expectations at $10.3 billion.

Salesforce guided close to the consensus estimate for the upcoming Q4, saying it will earn between $3.02 and $3.04 per share, with significantly higher revenue than expected — $11.1 billion to  $11.2 billion.

Salesforce stock is now up more than 1%, but the Voo has gone flat.