Chloe Lemaire, an analyst from Jefferies, maintained the Buy rating on MTU Aero Engines. The associated price target remains the same with €470.00.
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Chloe Lemaire’s rating is based on the current dynamics observed in the storage and return to service of aircraft powered by GTF engines, particularly the A320neo. Despite a slight decrease in the number of stored aircraft, the overall storage levels remain higher than desired. However, there is a positive trend in the return of aircraft to service, especially those stored for extended periods, which suggests improvements in parts availability.
Furthermore, the year-over-year growth in flight hours indicates a robust demand for air travel, which could positively impact MTU Aero Engines’ performance. Although the recovery in stored fleet is not yet significant, the ongoing focus on returning long-stored aircraft to service is a promising sign. Chloe Lemaire believes that as parts availability continues to improve, MTU Aero Engines is well-positioned to benefit from the anticipated normalization later in the year.
Lemaire covers the Industrials sector, focusing on stocks such as MTU Aero Engines, Airbus Group SE, and Rheinmetall. According to TipRanks, Lemaire has an average return of 37.2% and an 86.59% success rate on recommended stocks.
In another report released yesterday, Berenberg Bank also maintained a Buy rating on the stock with a €430.00 price target.