FTAI Aviation: An Expensive Buy On Airbus And Boeing Airplane Shortages

Sep. 23, 2024 12:52 PM ETFTAI Aviation Ltd. (FTAI) StockFTAI57 Comments
(8min)

Summary

  • FTAI Aviation benefits from Boeing and Airbus delivery delays, driving demand for aftermarket services, especially in engine leasing and maintenance.
  • Despite higher input costs and inflationary pressures, FTAI Aviation's Q2 2024 revenues grew 61.7%, with adjusted EBITDA up 40% to $213.9 million.
  • FTAI Aviation raised its 2024 EBITDA guidance to $825-$850 million and its 2026 target to $1.25 billion, reflecting strong demand and growth prospects.
  • While the stock is fairly valued against FY25 earnings, I maintain a Buy rating due to ongoing demand and Boeing/Airbus delivery issues.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »
Graz, Austria - March 5, 2024: Closeup of jet engine and main gear of an Airbus A320. Airplane parked at night at the apron.

Photofex-AT/iStock via Getty Images

I have been covering FTAI Aviation (NASDAQ:FTAI) since September 2023 and the stock has performed phenomenally with a return of more than 250% and 66% since my report published in May. With share prices having climbed sharply, we

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This article was written by

20.01K Followers

Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BA, EADSF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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