Analyst Chloe Lemaire from Jefferies maintained a Buy rating on MTU Aero Engines (0FC9 – Research Report) and increased the price target to €430.00 from €410.00.
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Chloe Lemaire’s rating is based on the strong potential for margin improvement at MTU Aero Engines, driven by robust aftermarket performance. The company is targeting a significant increase in margins within its Original Equipment Manufacturer (OEM) segment, similar to the improvements seen in Rolls-Royce’s civil aerospace division. This anticipated growth is attributed to the enhanced durability of long-term service agreements (LTSA), which are expected to bolster earnings.
Despite conservative guidance regarding maintenance, repair, and overhaul (MRO) activities and cash flow timing, Chloe Lemaire believes MTU Aero Engines is well-positioned to achieve its 2030 objectives. Even with less favorable foreign exchange assumptions, the company’s prospects remain strong, leading to an increased price target of €430 from €410 and a reiterated Buy rating.
In another report released today, Deutsche Bank also upgraded the stock to a Buy with a €425.00 price target.