Update shared on19 Sep 2025
Fair value Decreased 1.35%Analyst sentiment on MTU Aero Engines has turned more balanced as optimism regarding aftermarket demand and operational performance is tempered by valuation and macroeconomic caution, resulting in a slight reduction in the consensus price target from €394.75 to €389.44.
Analyst Commentary
- Bullish analysts have raised price targets citing improved earnings visibility and stronger than expected operational performance.
- Upward adjustments reflect confidence in the company’s ability to capitalize on ongoing recovery in the commercial aerospace sector.
- JPMorgan and other major institutions see sustained demand for engine aftermarket services as a key value driver.
- Bearish analysts have highlighted concerns about a potential cyclical downturn, tempering enthusiasm and signaling a more balanced risk/reward outlook.
- Some price targets were lifted but coupled with neutral or equal weight ratings, indicating ongoing caution regarding valuation and macroeconomic risks.
What's in the News
- MTU Aero Engines raised and reaffirmed its 2025 earnings guidance, expecting group revenues between EUR 8.6 billion and EUR 8.8 billion.
- Revenue growth forecast upgraded due to stronger-than-expected aftermarket demand, driven by increased shop visits and high demand for G90 engines.
- Improved turnaround times are anticipated to boost the number of shop visits further.
Valuation Changes
Summary of Valuation Changes for MTU Aero Engines
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €394.75 to €389.44.
- The Future P/E for MTU Aero Engines remained effectively unchanged, moving only marginally from 21.62x to 21.38x.
- The Discount Rate for MTU Aero Engines remained effectively unchanged, moving only marginally from 5.70% to 5.75%.
Disclaimer
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