Jefferies analyst Sheila Kahyaoglu maintained a Buy rating on FTAI Aviation (FTAI – Research Report) yesterday and set a price target of $200.00.
Sheila Kahyaoglu’s rating is based on FTAI Aviation’s strategic investments and growth potential in the CFM56 market through its joint ventures and increased production capacity. The company is well-positioned to expand its market share from 5% to 25% by leveraging its Rome JV and other facilities, which are expected to significantly boost margins and cash flow.
Furthermore, FTAI’s focus on optimizing operations and expanding its product offerings is projected to increase its EBITDA margins to approximately 50% from the current 35%. This margin expansion, coupled with strong cash conversion, is anticipated to support future growth and shareholder returns. The stock’s attractive yield and the company’s robust financial outlook, with expected free cash flow exceeding $900 million by 2026, further underpin the Buy rating.
In another report released on February 27, Stifel Nicolaus also maintained a Buy rating on the stock with a $100.00 price target.