The industry is expected to give birth to trillion-dollar leading companies, Citigroup is optimistic about GE Aerospace (GE.US), initiating coverage with a "Buy" rating.

Citi Group has initiated coverage on GE Aviation (GE.US) for the first time, giving it a "buy" rating with a target price of $386. The bank has conducted research on the aviation, aerospace, and defense sectors for the first time and predicts that current industry trends will lead to the emergence of a trillion-dollar market leader within the next five years, with GE Aviation likely to be one of them. Earlier this month, GE Aviation received an order to provide eight LM2500 marine gas turbine engines for the US Navy's newest "Arleigh Burke" class Flight III destroyers. These engines will be installed on the future DDG 145 and DDG 146 destroyers, with each ship requiring four gas turbine engines for its propulsion system. This contract solidifies the position of the LM2500 as the primary power plant for the "Arleigh Burke" class destroyers, which have served as a core force in the US Navy's surface fleet for over 30 years.