FTAI Aviation Launches New Platform, Stock Rises 13.6% in December
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18h ago
0mins
Source: Fool
- New Business Platform: FTAI Aviation announced the launch of FTAI Power on December 30, focusing on converting CFM56 engines into power turbines for data centers, addressing the global demand for reliable energy and expected to drive future revenue growth.
- Surging Market Demand: The rapid growth of artificial intelligence applications has led to a sharp increase in data center power needs, causing a strong market reaction to the launch of FTAI Power, which enhances FTAI's competitive position.
- Long-Term Service Agreements: FTAI's existing operations in buying, leasing, and repairing CFM56 engines provide a solid foundation for developing FTAI Power, although GE Aerospace's increased aggressiveness in signing long-term service agreements may pose challenges for FTAI.
- Competition and Collaboration: The launch of FTAI Power not only helps FTAI maintain competitiveness in the CFM56 market but may also positively impact GE Aerospace and GE Vernova by validating the market potential of aeroderivative technology.
Analyst Views on FTAI
Wall Street analysts forecast FTAI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FTAI is 223.71 USD with a low forecast of 175.00 USD and a high forecast of 306.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 240.630
Low
175.00
Averages
223.71
High
306.00
Current: 240.630
Low
175.00
Averages
223.71
High
306.00
About FTAI
FTAI Aviation Ltd. owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. Its segments include Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees and customers. The Aerospace Products segment, through its maintenance facilities, equity method investment and exclusivity arrangements, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components for the CFM56-7B, CFM56-5B and V2500 commercial aircraft engines. Its propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to its airline, lessor, and maintenance, repair, and operations customer base. It also owns and leases jet aircraft, which often facilitates the acquisition of engines. It owns and manages over 421 aviation assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
