FTAI Aviation's partnership agreement and 2025 guidance drive stock up 7%

From Investing.com: 2024-12-31 09:02:19

Citi analysts are bullish on FTAI Aviation’s recent strategic moves, citing a partnership agreement and 2025 guidance as growth drivers. The company’s shares jumped over 7% premarket after a 2% dip on Monday. The new partnership aims to acquire narrow-body aircraft for engine and module swaps, boosting FTAI’s global market position.

FTAI’s partnership with third-party investors targets the acquisition of lease aircraft, enhancing its engine module market presence. The initiative offers exclusive engine and module swap rights, benefiting both FTAI and its partners. A $549 million sale of 46 on-lease aircraft is set for completion by Q2 2025, following the acquisition of 41 planes by Q3 2024.

FTAI’s 2025 guidance looks strong, with projected EBITDA of $1.1 billion to $1.15 billion. This includes $600 million to $650 million from aerospace products and $500 million from aviation leasing. Key assumptions include 100 CFM56 engine modules per quarter and consistent or higher aerospace margins compared to 2024 levels.

Citi maintains a positive outlook on FTAI, keeping a Buy rating and $165 price target. The bank is optimistic about the company’s strategic initiatives and growth prospects, believing that FTAI is poised for success in the aviation industry.



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