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Investing.com - RBC Capital has reiterated its Outperform rating and $185.00 price target on FTAI Aviation (NASDAQ:FTAI). The stock, currently trading at $174.16, has shown remarkable momentum with an 85% return over the past six months, according to InvestingPro data.
The firm maintained its positive outlook following an investor dinner with FTAI COO David Moreno and CFM Business Leader Sam Hammoud at the Europe MRO conference.
RBC Capital noted that industry fundamentals remain strong, with legacy engine lease rates, values, and demand currently at elevated levels.
The firm highlighted that support for the CFM56 engine is expected to remain robust as shop visits peak around 2028, with the engine continuing to serve as a workhorse for global airlines.
RBC Capital identified several potential catalysts for FTAI, including the expected third major CFM56 PMA part certification, the launch of SCI 2.0, possible MRO capacity additions, and continued engine investments.
In other recent news, FTAI Aviation has signed a multi-year Perpetual Power Agreement with Finnair to provide engine exchanges for 36 CFM56-5B engines. This agreement is designed to replace traditional engine shop visits with direct exchanges, which FTAI claims will enhance fleet reliability and provide more predictable maintenance costs for Finnair. Additionally, several investment firms have raised their price targets for FTAI Aviation. RBC Capital increased its target to $185 while maintaining an Outperform rating, influenced by management’s presentation at the 2025 RBC Industrials Conference. BTIG raised its price target to $230, citing FTAI’s strong earnings performance in the second quarter of 2025 and improved cash flow projections. Morgan Stanley also raised its target to $175, reflecting the company’s projected growth trajectory, with significant revenue and EBITDA growth expected from 2024 to 2026. JMP Securities increased its price target to $205, describing the second-quarter results as an inflection point for FTAI, particularly in terms of cash flow and capital structure improvements.
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