MTU Aero Engines, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Chloe Lemaire from Jefferies maintained a Buy rating on the stock and has a €430.00 price target.
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Chloe Lemaire’s rating is based on the anticipated strong performance of MTU Aero Engines in the aftermarket sector, which is expected to drive a 21% growth in EBIT. This positive outlook is supported by the company’s recent guidance upgrade, suggesting confidence in their financial trajectory.
Additionally, while foreign exchange rates, particularly the euro to dollar spot rate, remain a concern for investors, MTU’s solid free cash flow performance is expected to mitigate these worries. The focus on maintaining robust cash flow, assuming consistent compensation payments, further supports the Buy rating.
In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a €425.00 price target.