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Investing.com - Jefferies raised its price target on FTAI Aviation (NASDAQ:FTAI) to $180.00 from $175.00 on Monday, while maintaining a Buy rating on the stock. According to InvestingPro data, FTAI currently trades at a P/E ratio of 33.7x, with analysts setting price targets ranging from $138 to $300.
The price target increase follows FTAI’s strong second-quarter performance, which showed a 26% sequential increase in AP EBITDA to $165 million, demonstrating significant market penetration growth that has doubled compared to a year ago. The company’s revenue growth has been impressive at 56% year-over-year, with EBITDA reaching $920 million in the last twelve months.
Jefferies noted that FTAI’s current market penetration stands at 9% annualized, with the company raising both segment EBITDA and free cash flow projections by over $100 million.
Module unit economics continue to improve, with Jefferies estimating they reached $800,000 in Q2, and projecting a path to exceed $1 million with 40% margins by 2026, representing a more than 5 percentage point year-over-year improvement.
The firm highlighted that FTAI is approaching an inflection point for discretionary free cash flow availability for additional mergers and acquisitions and share repurchases as leverage falls below 3X.
In other recent news, FTAI Aviation reported impressive second-quarter 2025 earnings, significantly surpassing analyst expectations. The company achieved earnings per share of $1.57, outperforming the anticipated $1.29, and recorded revenues of $676 million, well above the forecasted $536.76 million. The strong performance was reflected in the company’s adjusted EBITDA, which reached $347 million, exceeding the Street’s estimate of $284 million. The Aerospace Products segment contributed $165 million in adjusted EBITDA, while the Aviation Leasing segment generated $199 million, both showing sequential growth. Analysts have taken notice, with Benchmark reiterating its Buy rating and maintaining a $300 price target, citing the strong quarterly results. Stifel also raised its price target for FTAI Aviation to $147, highlighting management’s explanation of depressed aerospace margins due to a large order from a major U.S. airline. These developments underscore the company’s robust performance and positive outlook from analysts.
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