Tuesday, BTIG analysts increased their price target for FTAI Aviation (NASDAQ:FTAI) shares from $180 to $190, while maintaining a "Buy" rating. Currently trading at $126.51, the stock has shown remarkable momentum with a 176.4% return over the past year.
The revision follows FTAI Aviation's announcement on Monday regarding a strategic capital initiative with third-party institutional investors, aimed at acquiring A320ceo and 737NG aircraft using the generated funds. According to InvestingPro data, analyst targets for FTAI range from $132 to $300, suggesting significant potential upside.
FTAI Aviation also revealed its adjusted EBITDA forecast for 2025, estimating it to range between $1.10 billion and $1.15 billion, representing significant growth from the current EBITDA of $723 million. BTIG's analysts believe that this development supports the company's growing emphasis on its Aerospace Products business, which they expect to lead to a higher valuation multiple for FTAI Aviation. The company's revenue is forecast to grow by 48% this fiscal year, as reported by InvestingPro.
The analysts expressed confidence in the company's direction, stating that the partnership is likely to facilitate a valuation expansion. They emphasized the strategic move as a positive step that confirms FTAI Aviation's pivot towards a more focused Aerospace Products division.
The raised price target to $190 is indicative of BTIG's outlook on FTAI Aviation's future financial performance and market position. The analysts at BTIG underscored the significance of the recent strategic capital initiative and its potential to enhance FTAI Aviation's financial metrics and investor appeal.
FTAI Aviation's strategic initiative and updated EBITDA guidance are seen as key drivers behind the increased price target, signaling a positive outlook for the company's growth and profitability in the coming years.
In other recent news, FTAI Aviation has announced a Strategic Capital initiative to acquire on-lease 737NG and A320ceo aircraft. The initiative is a joint venture with third-party institutional investors, including alternative asset managers with private credit platforms.
Anticipating favorable market conditions, FTAI Aviation plans to deploy more than $3 billion annually. The company has also agreed to sell approximately 46 on-lease narrowbody aircraft to the partnership for an estimated sum of $550 million by the end of the second quarter of 2025.
Analysts from JMP Securities, Compass Point, and Jefferies have maintained their positive ratings on FTAI Aviation, citing the company's strong momentum and promising growth prospects. RBC Capital Markets also made significant changes in the Aerospace & Defense sector, including various upgrades and downgrades.
FTAI Aviation has provided financial guidance for fiscal year 2025, projecting an Adjusted EBITDA of approximately $1.1 to $1.15 billion. This forecast exceeds both the current estimate and consensus, suggesting a positive outlook for the company's financial performance.
FTAI Aviation reported significant growth in Q3 2024, with adjusted EBITDA reaching $232 million, a 50% increase from the same period last year. The company also sold its last two offshore energy vessels, Pioneer and Pride, for approximately $143 million.
In partnership with Chromalloy, FTAI Aviation received Federal Aviation Administration approval for a key engine component, which could potentially double the company's EBITDA per engine module and reduce engine shop visit costs.
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