FTAI Stock Forecast & Price Target

FTAI Aviation's positive outlook is supported by a projected 33% year-over-year growth in its Aerospace Products division, driven by increased production and expanding margins expected to reach 40% by 2026. The company's strategic focus on enhancing module sales and leveraging partnerships, such as the SCI partnership, is anticipated to significantly boost top-line growth and profitability, especially in the legacy narrowbody market. Furthermore, robust leasing demand and strong maintenance, repair, and overhaul (MRO) volumes for key engine models, alongside potential additional SCIs, are expected to create substantial EBITDA opportunities moving forward.

FTAI Aviation Ltd faces significant risks due to its high reliance on the CFM56 engine, with potential over-retirement of key aircraft models like the 737NG and A320ceo adversely impacting its leasing operations and aftermarket services. The company’s exposure to the volatile airline industry raises concerns about its ability to consistently collect lease payments, further jeopardizing cash flow stability. Additionally, stagnation in projected revenues, with expected results showing little to no growth year-over-year, suggests that FTAI may be trading at lower valuation multiples, reflective of its declining profitability and growth prospects.