Update shared on 27 Oct 2025
Fair value Increased 4.44%Analysts have increased their fair value estimate for MTU Aero Engines from €393.41 to €410.88, citing stronger revenue growth and improving profit margins as key factors for the upward revision.
Analyst Commentary
Recent analyst research on MTU Aero Engines highlights a mix of optimistic outlooks and more cautious perspectives following the company's latest results and price target revisions.
Bullish Takeaways- Bullish analysts have continued to raise their price targets on MTU Aero Engines, reflecting confidence in the company's growth prospects and long-term valuation.
- The strong performance in the third quarter, especially in spare parts revenue, is seen by some as a sign of robust operational execution and a sustainable margin profile.
- Recurring upgrades to price targets point to improving fundamentals and expectations that profit margins will remain solid in the near term.
- With the company reinstated as a top pick in the civil aviation sector, some analysts see MTU poised to capture further market share as demand for civil engine parts grows.
- Some bearish analysts are tempering excitement by highlighting balanced risk and reward at current valuation levels. They note that upside may be limited if the industry cycle starts to turn.
- Cautious views point to sustainability concerns regarding the recent strength in results, with skepticism about whether current momentum can persist over the longer term.
- Downwardly revised price targets and rating changes reflect ongoing uncertainty in the operating environment and potential future headwinds for the stock.
What's in the News
- Jefferies raised its price target for MTU Aero Engines to EUR 500 from EUR 470 and reaffirmed a Buy rating. The firm highlighted strong spare parts performance and reinstated MTU as its "Civil Top Pick" (Jefferies).
- MTU Aero Engines AG reaffirmed its earnings guidance for 2025, with expected group sales between EUR 8.6 billion and EUR 8.8 billion based on an average exchange rate of USD 1.13 per EUR 1 (Company Guidance).
Valuation Changes
- The Fair Value Estimate has increased from €393.41 to €410.88, reflecting a moderate upward revision.
- The Discount Rate has edged down slightly, moving from 5.77% to 5.77%.
- The Revenue Growth assumption has risen from 9.89% to 10.24%, indicating a slightly stronger growth outlook.
- The Net Profit Margin forecast has improved from 10.29% to 10.64%.
- The Future P/E Ratio estimate has eased from 21.58x to 21.37x, denoting a marginally lower valuation multiple.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.