Stryker shares tumble despite strong Q2 results and raised guidance
On Wednesday, JPMorgan analyst David Perry increased the price target for MTU Aero Engines (MTX:GR) (OTC: OTC:MTUAY) to €415.00, up from the previous €405.00, while maintaining an Overweight rating on the stock. The company, currently valued at $17.42 billion, trades at a P/E ratio of 23.66. The adjustment follows the London segment of MTU’s FY24 roadshow, featuring CFO Peter Kameritsch, which took place on February 24-25.
During the roadshow, a primary topic of discussion with investors was MTU’s substantial investments in its business throughout 2024. The company’s strong financial position, evidenced by its moderate debt levels and impressive 38.19% revenue growth over the last twelve months, supports these initiatives. According to Perry, these strategic investments are anticipated to catalyze enhanced growth and higher EBITA for MTU in the upcoming years.
As a result of these expectations, JPMorgan has revised its earnings per share (EPS) estimates for MTU for the years 2026 to 2028, with an increase of 1%, 3%, and 6%, respectively. These projections are notably higher than the Bloomberg median consensus, with JPMorgan’s EPS estimates exceeding the consensus by 6%, 11%, and 15% for each respective year. InvestingPro analysis reveals additional insights about MTU’s financial health and growth potential, with over 12 exclusive ProTips available to subscribers.
The new price target of €415 reflects a 3% increase from the previous target and is based on a multiples approach, considering the improved earnings forecast. Perry suggests that this new price target implies a potential upside of approximately 35% over the next two years for MTU Aero Engines’ shares. The company has maintained dividend payments for 19 consecutive years, demonstrating consistent shareholder returns.
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