RBC Capital has increased its price objective for FTAI Aviation (NASDAQ: FTAI) to $350 from $270 while maintaining an Outperform rating on the stock. The revised target implies upside relative to the current share price of $292.10, though InvestingPro data referenced alongside the update indicates the shares may be trading above their Fair Value.
In explaining the change, the brokerage singled out FTAI’s newly announced partnership with CFM International as "perhaps the most strategically significant" of several corporate developments. RBC also highlighted a third PMA part approval and the company’s launch of its FTAI Power business line among the recent announcements that informed the revised outlook. FTAI has posted strong top-line momentum, with revenue rising 51.35% over the last twelve months.
RBC said it now expects FTAI to surpass prior projections for its CFM56-related business in both revenue and margin performance, describing the company as the leading non-OEM participant in the CFM56 aftermarket. That assessment underpinned adjustments to the analyst model: fourth quarter 2025 estimates were revised to reflect a lower lease contribution, and the firm added $450 million to its 2027 adjusted EBITDA projections to capture the expected contribution from FTAI Power.
FTAI Aviation operates in engine leasing and aftermarket services for commercial aircraft engines. The company recently disclosed a significant multi-year agreement with CFM International - the joint venture between GE Aerospace and Safran Aircraft Engines - to provide component and repair support for CFM56 engines. RBC noted the agreement as central to strengthening FTAI’s maintenance capabilities for the CFM56 fleet, which the update described as the largest commercial aircraft engine population globally.
Broker responses to these announcements were not limited to RBC. BTIG raised its price target to $335 from $230 and maintained a Buy rating. Compass Point increased its target to $327 from $240, citing the potential of FTAI Power as a new business line that could produce substantial incremental annual EBITDA. The note also recalled an earlier RBC move that raised the target to $270 from $200 while keeping an Outperform stance after FTAI Power was first unveiled; that program aims to convert part of the company’s engine portfolio into aeroderivative turbines.
Taken together, the recent analyst actions and corporate agreements underscore FTAI’s strategic push to broaden its aftermarket footprint and expand into adjacent power-generation opportunities. RBC’s model changes reflect both a reallocation of expected near-term lease income and an explicit valuation of the anticipated earnings contribution from FTAI Power through 2027.
What this means for markets and sectors
- FTAI’s developments primarily affect the aviation and aerospace aftermarket sectors, where engine lease dynamics and component repair services drive revenue and margins.
- Equity analysts and investors in the aerospace supply chain are likely to reassess valuation frameworks for companies that combine leasing, maintenance, and power-conversion businesses.
- Financial markets tracking small- and mid-cap aerospace names may see renewed analyst activity and target revisions as brokers incorporate FTAI Power assumptions.
Key points
- RBC Capital raised its FTAI price target to $350 from $270 and maintained an Outperform rating.
- RBC highlighted a multi-year partnership with CFM International, a third PMA part approval, and the launch of FTAI Power as material developments informing its outlook; FTAI’s revenue grew 51.35% in the past 12 months.
- Analyst estimate changes included a reduced lease contribution in Q4 2025 and an added $450 million to 2027 adjusted EBITDA projections to reflect the expected FTAI Power contribution.
Risks and uncertainties
- The stock may be trading above its Fair Value, according to InvestingPro data cited in the coverage, which could limit near-term upside for investors in the equity markets.
- Near-term earnings estimates were adjusted for a lower lease contribution in fourth quarter 2025, indicating sensitivity in FTAI’s outlook to lease revenue dynamics that affect the aerospace leasing sector.
- RBC’s model includes an assumed $450 million contribution to adjusted EBITDA by 2027 from FTAI Power; the degree to which actual results align with that assumption represents a material uncertainty for valuation and the company’s performance in the power-conversion and aftermarket sectors.