In a report released today, Chloe Lemaire from Jefferies maintained a Buy rating on MTU Aero Engines, with a price target of €470.00.
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Chloe Lemaire has given her Buy rating due to a combination of factors, primarily focusing on the positive outlook for MTU Aero Engines. The company has shown robust growth in its commercial aftermarket segment, particularly with Pratt & Whitney, which has seen a 23% organic increase. Although the commercial original equipment segment was softer, it still achieved a 5% organic rise, maintaining a balanced mix of spares and installed equipment expected in the upcoming quarter.
Furthermore, the GTF recall campaign has been handled more positively than anticipated, with no new charges announced. The company has conducted heavier workscopes, achieving a record-high number of PW1100G re-assemblies in the third quarter, setting the stage for a 30% growth in maintenance, repair, and operations output for the year. Additionally, turnaround times have improved significantly, and the compensation outlook remains consistent, with a substantial payment expected in the fourth quarter. These factors collectively support the Buy rating given by Chloe Lemaire.
In another report released yesterday, Berenberg Bank also maintained a Buy rating on the stock with a €450.00 price target.