FTAI Aviation is not a pure leasing or MRO play and that affects how the company should be valued. The company focuses on value addition and extraction from aircraft engines with limited remaining life. The book value suggests overvaluation, but using EV/EBITDA multiples, the FTAI stock price target is $165.
FTAI Aviation (FTAI) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
FTAI Aviation stock (NASDAQ: FTAI), an aircraft leasing company, saw a sharp 24% fall on Wednesday, Jan 15. This can be attributed to a report published by Muddy Waters Research alleging that FTAI manipulates its financials.
After Muddy Waters Research released a short report today alleging that FTAI Aviation has been deceptive about its accounting practices, Citi analyst Stephen Trent notes that this has led to "a knee-jerk share price response" in shares on Wednesday afternoon. However, looking through Muddy Waters' report, "some of the key arguments seem a little hard to understand," says the analyst, who has a Buy rating on FTAI, which is down about 27% to $112.31 in late day trading.
FTAI Aviation: Innovative Business Model
Wolfe Research upgraded FTAI Aviation to Outperform from Peer Perform with a $190 price target.
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FTAI Series C preferred stock offers an 8% yield and is trading above its liquidation preference, with a cumulative dividend structure ensuring missed payments add up. The dividend rate is set to reset in June 2026, potentially increasing the yield to 11.125%, making the stock attractive but likely to be redeemed. Despite limited upside due to potential redemption, the stock offers a 9% total return opportunity, making it a secure investment for income-focused investors.
FTAI Aviation has caught another strong bid in 2024. It earns tremendously high returns on the net tangible assets required to operate and grow the company. The distribution of outcomes in my valuation estimates get me to a range of $172–$180/share.
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Here is how FTAI Aviation (FTAI) and Northrop Grumman (NOC) have performed compared to their sector so far this year.
FTAI Aviation Ltd. (NASDAQ:FTAI ) Q3 2024 Earnings Conference Call October 31, 2024 9:00 AM ET Company Participants Alan Andreini - IR Joseph Adams - CEO Angela Nam - CFO David Moreno - COO Conference Call Participants Sheila Kahyaoglu - Jefferies Jason Holcomb - Morgan Stanley Joshua Sullivan - The Benchmark Company Hillary Cacanando - Deutsche Bank Giuliano Bologna - Compass Point Kenneth Herbert - RBC Brandon Oglenski - Barclays Stephen Trent - Citi Andre Madrid - BTIG Operator Good day and thank you for standing by.