The analysis firm Jefferies has maintained the rating for MTU Aero Engines AG at ‘Buy’ with a price target of 430 euros. This rating signals a positive assessment of the company’s future development and corresponds to an upside potential of about 14 percent compared to the current price level.
Why MTU Aero Engines is in Focus
A central reason for this optimistic rating is the usage of geared turbofan engines (GTF), in which MTU is involved as a partner. Tracker data shows that fleet growth in aircraft equipped with GTF technology increases total operating hours while ensuring high utilization. This suggests that MTU will benefit from rising demand for maintenance and spare parts services as more aircraft with these engines are in operation.
Growing Demand for Maintenance
Additionally, Jefferies’ assessment supports the trend that airlines will use their fleets longer, which further drives the need for maintenance—an area where MTU is traditionally strong. The stabilization and expected improvement in the GTF turbine program (specifically in the Airbus A320neo) also contribute to the positive outlook.
Overall, the ‘Buy’ rating with a price target of 430 euros reflects confidence in the long-term growth prospects of MTU Aero Engines, especially due to its role in the geared turbofan engine segment and through sustainable service revenues from the extended use of existing aircraft fleets.