Optimistic Financial Outlook and Shareholder Returns Bolster MTU Aero Engines’ Buy Rating

Chloe Lemaire, an analyst from Jefferies, maintained the Buy rating on MTU Aero Engines (0FC9 – Research Report). The associated price target remains the same with €400.00.

Chloe Lemaire’s rating is based on MTU Aero Engines’ optimistic financial guidance for the fiscal year 2025. The company has projected sales between €8.3-8.5 billion and an adjusted EBIT that aligns with consensus at the midpoint and surpasses it at the high point. This guidance suggests confidence in the company’s financial performance, which is anticipated to be positively received by the market.
Moreover, MTU Aero Engines’ consistent free cash flow in the low triple-digit million euros range and a proposed dividend increase to €2.2 for FY24, marking a 10% year-over-year rise, further underscore the company’s financial health and shareholder return potential. These factors collectively contribute to Chloe Lemaire’s Buy rating, indicating a favorable outlook for the company’s stock.

According to TipRanks, Lemaire is a 5-star analyst with an average return of 29.6% and a 76.77% success rate. Lemaire covers the Industrials sector, focusing on stocks such as Airbus Group SE, Rolls-Royce Holdings, and BAE Systems.

In another report released on November 26, UBS also maintained a Buy rating on the stock with a €370.00 price target.

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MTU Aero Engines (0FC9) Company Description:

MTU Aero Engines specializes in the development and production of commercial and military aircraft engine components and spare parts. It also performs maintenance, repair, and overhaul, or MRO, services for aircraft engines. More than 30% of commercial aircraft has MTU technology on board. MTU is also a major assembler of aircraft engines. The commercial and military engine segment develops and manufactures engine components for new engine production and spare parts for the aftermarket. The commercial maintenance business reports MTU’s MRO activities.