BTIG raised its price target for FTAI Aviation (NASDAQ: FTAI) to $335 from the previous $230 mark on Friday, while affirming a Buy rating on the stock. The updated target slightly exceeds the highest analyst price target of $333, with shares of FTAI last closing at $293.49.
This upward revision follows FTAI's recent announcement of a long-term agreement with CFM International, a joint venture between GE Aerospace and Safran, to provide component and repair services specifically for CFM56 engines. This development is notable amid FTAI's robust stock momentum, with the share price increasing by 192% over the past year and gaining 49% year-to-date.
The contract ensures that FTAI will have access to original equipment manufacturer (OEM) replacement parts, thrust performance upgrades, and component repair services for these widely used engines. However, detailed terms regarding the duration and financial conditions of the deal remain undisclosed.
BTIG highlighted this agreement as an endorsement of FTAI’s business approach, emphasizing that it helps to mitigate previous uncertainties linked to potential conflicts with the OEM. The investment firm attributed the raised price target to a higher valuation multiple for Aerospace Products, driven by increasing adoption of maintenance, repair, and exchange (MRE) services. BTIG also refreshed its financial estimates for FTAI ahead of the company’s scheduled Q4 2025 earnings release on February 25.
According to InvestingPro data, FTAI currently trades at a high price-to-earnings (P/E) ratio of 66.56, which may suggest the stock is overvalued relative to fair value. Investors seeking a more detailed evaluation can consult FTAI’s full Pro Research Report, which includes extensive financial metrics and expert recommendations.
Complementing the OEM agreement, FTAI Aviation has introduced a new business segment, FTAI Power, focused on converting parts of its CFM56 engines into aeroderivative turbines for electricity production. This initiative aims to leverage existing engine technology into new markets for power generation.
Analysts from Compass Point responded favorably to these developments, raising their price target for FTAI to $327, citing potential substantial incremental EBITDA from the new business line. RBC Capital also increased their price target to $270 while reiterating an Outperform rating, and Wolfe Research maintained an Outperform stance with a $225 price target.
The collective analyst enthusiasm highlights FTAI’s strategic efforts to broaden its product and service offerings while enhancing engine lifecycle management solutions. These efforts are reflected in recent price target upgrades and sustained stock performance gains.