Update shared on 10 Nov 2025
Fair value Increased 0.36%MTU Aero Engines' analyst price target saw a modest increase to €412.35. Analysts cited steady revenue growth and robust aftermarket performance as key drivers behind the upward revision.
Analyst Commentary
Recent analyst research on MTU Aero Engines reflects a dynamic mix of optimism regarding the company's growth outlook and caution on risks that could impact future performance. Price targets have generally been raised, though some doubts about sustainability and market cycle shifts persist.
Bullish Takeaways
- Bullish analysts raised price targets meaningfully, at times exceeding EUR 500. This signals strong confidence in the company's valuation and execution.
- Steady aftermarket performance and positive spare parts momentum are viewed as ongoing growth drivers that should support continued revenue expansion.
- Quarterly results, including robust Q3 figures, have reinforced bullish expectations for future profitability and margin resilience.
- Some major institutions reinstated MTU Aero Engines as a top sector pick, emphasizing their view of the company as a leading player in civil aerospace.
Bearish Takeaways
- Bearish analysts point out skepticism about the sustainability of recent performance. They caution that strong quarters may not persist long-term.
- Price target reductions and the move to a neutral stance were tied to concerns over a potential market cycle turn, which could impact risk/reward dynamics.
- Despite notable achievements, some warn that valuation may have run ahead of fundamentals given current uncertainties.
- Weak share reactions to positive results suggest that investors remain cautious about upside, even as core metrics improve.
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, noting strong spare parts performance despite some skepticism in the market (Jefferies, Periodical).
- MTU Maintenance and Teledyne Controls announced a partnership to enhance engine health monitoring and predictive maintenance. Viva Aerobus will be the launch customer for new services on their A320 V2500 fleet (Key Developments).
- MTU Aero Engines AG reaffirmed its earnings and revenue guidance for 2025, forecasting group sales between EUR 8.6 billion and EUR 8.8 billion (Key Developments).
Valuation Changes
- The Fair Value Estimate has risen slightly from €410.88 to €412.35.
- The Discount Rate has fallen modestly to 5.64 percent, down from 5.77 percent previously.
- Revenue Growth projections have increased marginally, now at 10.30 percent compared to 10.24 percent.
- The Net Profit Margin is forecast to dip slightly, moving from 10.64 percent to 10.59 percent.
- The future P/E ratio has edged up, now at 21.44x compared to 21.37x.
Disclaimer
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