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Investing.com - Goldman Sachs initiated coverage on MTU Aero Engines (ETR:MTX) (OTC:MTUAY) with a Neutral rating and a price target of EUR350.00, according to a research note released Friday.
The investment bank described MTU Aero Engines as a "high-margin business with a relatively asset-light structure and high ROIC vs. peers," but noted that the current valuation already reflects these quality attributes.
Goldman Sachs forecasts a 9% EBIT CAGR for the company from 2025 to 2030, positioning its estimates approximately 1% above consensus for fiscal year 2026, 2% above for 2027, and 1% below consensus for 2028 EBIT.
The firm projects free cash flow of approximately EUR926 million in fiscal year 2028, broadly in line with the consensus estimate of EUR905 million.
The EUR350 price target implies a valuation multiple of 15x 12-month forward EV/EBIT for the German aircraft engine manufacturer’s shares.
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