On Friday, Wolfe Research analysts upgraded FTAI Aviation stock, traded on NASDAQ:FTAI, from Peer Perform to Outperform, setting a price target of $190.00. T
The revision follows the company's announcement of its Strategic Capital Investment plan last week, which has contributed to the stock's 17% year-to-date increase, outperforming the flat movement of the S&P 500.
Analysts cited the moderation of certain concerns previously held about FTAI Aviation and the potential for earnings revisions to propel the stock further. The new price target suggests approximately a 12% upside from the current trading levels.
FTAI Aviation's business is diversified into Leasing and Private Investment management, distinct from its Aerospace Products sector. Wolfe Research employs a sum-of-the-parts analysis for valuation due to the differences in these business segments.
Analysts noted that leasing peers are trading at approximately 9 times their 2025 estimates, while high-quality aerospace peers have an average trading multiple of around 20 times. FTAI's Aerospace Products business, which has a lower cash earning profile, is balanced by the company's rapid growth prospects.
The valuation of FTAI's earnings potential from the Strategic Capital Investment plan was done using a multiple similar to that used by Wolfe Research's Financials team for comparable businesses, which ranges between 28 to 30 times. Analysts outlook reflects confidence in the company's strategy and its impact on future earnings.
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