Analysts remain split on MTU Aero Engines, with bulls encouraged by stronger 2030 guidance and aftermarket momentum, while bears flag increased cyclical risks and valuation concerns—resulting in the consensus price target effectively unchanged at €394.75.
Analyst Commentary
- Bullish analysts cite MTU’s stronger-than-expected 2030 guidance, attributing this to airlines planning to extend the lifespan of existing fleets, driving higher demand for engine and spare parts.
- Positive revisions reflect confidence in MTU’s medium-term targets and expectations the company will benefit from strong aftermarket performance.
- Bearish analysts highlight increased risks in the cycle, leading to a more balanced risk/reward profile and justifying downgrades or lowered targets.
- Some analysts maintain cautious outlooks, raising price targets but keeping Hold or Sell ratings, indicating concerns remain about valuation or structural sector risks.
- Recent target upgrades also stem from improved underlying fundamentals and ongoing positive momentum in MTU’s core business segments, particularly as visibility on long-term targets improves.
What's in the News
- MTU Aero Engines raised its 2025 revenue guidance to EUR 8.6–8.8 billion, citing stronger-than-expected aftermarket demand, increased shop visits, and rising G90 engine demand.
- The company is continuously evaluating M&A opportunities and may consider share buybacks opportunistically, though the current deal environment remains limited.
- MTU Aero Engines recently held an Analyst/Investor Day.
Valuation Changes
Summary of Valuation Changes for MTU Aero Engines
- The Consensus Analyst Price Target remained effectively unchanged, at €394.75.
- The Consensus Revenue Growth forecasts for MTU Aero Engines remained effectively unchanged, at 9.9% per annum.
- The Net Profit Margin for MTU Aero Engines remained effectively unchanged, at 10.29%.
Disclaimer
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