FTAI Aviation partnership, guidance ‘very encouraging,’ says Citi

Citi says FTAI Aviation’s (FTAI) partnership agreement and 2025 guidance “look very encouraging.” The company’s strategic capital initiative should allow the partnership to acquire on-lease narrow-body aircraft that use CFM56 jet engines, while FTAI “arguably gains access to significantly more” CFM56s that could bolster its global engine module share, the analyst tells investors in a research note. Meanwhile, the company’s third party institutional partners could benefit from today’s attractive aircraft leasing economics, adds Citi. The firm points out FTAI’s 2025 EBITDA guidance is modestly above its estimate. These announcements could support FTAI’s shares on Tuesday morning, Citi contends. It keeps a Buy rating on the stock with a $165 price target