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NEW YORK - FTAI Aviation Ltd. (NASDAQ: FTAI), a commercial jet engine leasing company trading at $125.75 per share with a market capitalization of $12.8 billion, today announced the findings of an investigation conducted by its Board of Directors’ Audit Committee. The inquiry, aided by independent legal and forensic accounting advisors, was initiated in response to allegations from short seller reports published in January 2025. The company stated that the claims against it are unsubstantiated and without merit.
The review by the Audit Committee came after short sellers accused FTAI Aviation of misconduct, prompting a detailed examination of the allegations. "After a thorough and comprehensive review with the support of our independent legal and forensic accounting advisors, we have determined that the assertions made in the short seller reports are unsupported and have no merit," said Paul R. Goodwin, Chair of the Audit Committee. According to InvestingPro data, the company maintains a healthy current ratio of 3.86, indicating strong ability to meet short-term obligations, and operates with a moderate debt level.
FTAI Aviation emphasized its dedication to high standards of corporate governance, internal compliance, financial reporting controls, and transparent and timely disclosure. The company reassured its shareholders of its commitment to these principles.
In addition to addressing the allegations, FTAI Aviation is on track to announce its financial results for the fourth quarter and full year 2024 after the closing of Nasdaq on Wednesday, February 26, 2025. A conference call hosted by the management is scheduled for the following day at 8:00 A.M. Eastern Time. With revenue growth of 37% in the last twelve months and analysts forecasting continued sales growth, investors can access detailed analysis and 16 additional key insights through InvestingPro’s comprehensive research report.
The company’s business includes owning and maintaining commercial jet engines, particularly focusing on CFM56 and V2500 engines. FTAI Aviation also invests in aviation assets and aerospace products, aiming to generate stable cash flows and the potential for earnings growth and asset appreciation. The company’s stock has demonstrated strong performance, delivering a 141% return over the past year, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.
This news comes amidst the company’s forward-looking statements regarding the timely filing of its Annual Report Form 10-K. While the company has expressed confidence in its future plans and expectations, it also acknowledges the inherent risks and uncertainties related to its operations and market factors.
The information for this article is based on a press release statement from FTAI Aviation Ltd.
In other recent news, FTAI Aviation has been the center of attention due to various financial and operational developments. Benchmark analysts have maintained their Buy rating and a $300 price target for FTAI Aviation, citing strong fundamentals and growth prospects. This comes after a series of investor meetings aimed at addressing concerns from a short report. Meanwhile, BTIG has also reiterated its Buy rating with a $190 target, despite ongoing scrutiny from short sellers. The company has responded to these allegations by engaging an independent auditor to investigate, which may delay its full-year financial statements.
Stifel analysts have revised their price target for FTAI Aviation to $100 from $167, retaining a Buy rating but expressing concerns over the company’s aerospace revenue breakdown. This adjustment reflects uncertainty about the proportion of engine and module sales contributing to earnings. Jefferies has maintained its Buy rating and a $200 target, emphasizing the importance of a comprehensive review by legal counsel and independent advisors to address accounting allegations. The review process is expected to be thorough, as FTAI Aviation aims to ensure transparency and resolve any investor concerns.
Snowcap Research has echoed previous allegations by Muddy Waters (NYSE:WAT), questioning the legitimacy of FTAI Aviation’s financial disclosures and suggesting that the company’s profits may be inflated. These reports have led to increased investor scrutiny and a significant decline in the company’s stock value. As FTAI Aviation undergoes this critical review, investors are closely monitoring the situation for any further developments that could impact the company’s financial standing and market perception.
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