FTAI Aviation Gains Strategic Lead in CFM56 Market After CFM Deal, RBC Says

MT Newswires Live01-27 00:55

FTAI Aviation (FTAI) is positioned for stronger long-term earnings growth due to its new partnership with CFM International and the ramp-up of its FTAI Power turbine business, RBC Capital Markets said in a note Monday.

The new multi-year agreement with CFM grants FTAI access to OEM-backed parts, thrust upgrades, and repair support for the CFM56 engine, the investment firm said.

RBC said this deal supports FTAI's position as the top non-OEM player in the CFM56 aftermarket and will likely lead to improved margins and better parts sourcing.

The partnership also strengthens FTAI's alignment with CFM and supports the scale-up of its aviation maintenance and FTAI Power businesses, according to the note.

GE's latest results offered positive signs for FTAI, with the company projecting 2,300 to 2,400 CFM56 engine shop visits through 2028 and only a 2% retirement rate for the year, RBC said.

RBC maintained an outperform rating for FTAI and raised its price target to $350 from $270.

Price: 293.57, Change: +1.47, Percent Change: +0.50

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