GE Aerospace (GE) is a "sanctuary stock," thanks to its proactive tariff mitigation strategy, market positioning, and operational strength, BofA Securities said in a Friday note.

The company is using a number of tools to absorb the tariffs and rising costs, including drawbacks, free trade zones, pricing, and operational improvements, BofA analysts said, adding that they were confident in GE's ability to manage the macro environment effectively.

The analysts expect the company's strong results to continue in Q2, with 90% of the quarter's spare part orders already in hand, mitigating margin pressure from the expected accelerated growth in original equipment.

Of concern are the potential for dampened travel demand in H2 and further export/import restrictions, which could pose headwinds to the company's commercial business, the analysts said. However, they remain confident in the company realizing low-double-digit growth for full-year 2025.

BofA reiterated the company's stock rating at buy and increased the price objective to $230 from $225.

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