JMP Securities keeps an Outperform rating on FTAI Aviation (FTAI) with a $190 price target after the company announced it is launching a “Strategic Capital initiative,” which is a partnership with third-party institutional investors, likely including some alternative asset managers with private credit platforms. Assuming the partnership is successful in acquiring $3B of assets, this would imply 200 aircraft or 400 engines, the analyst tells investors in a research note. The firm says the company’s elevated growth is set to persist moving forward, specifically within Aerospace Products, as the partnership creates contractual maintenance, repair and exchange earnings from a long-dated vehicle. JMP also thinks FTAI’s addressable market has “expanded significantly overnight, specifically as the “rapidly growing” private credit market continues to explore new ways to source and originate and own “steady-returning assets.” It views the recent selloff in the shares as unwarranted and sees the pullback as “another attractive longer-term buying opportunity.”
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Read More on FTAI:
- Closing Bell Movers: CompoSecure gains 5% on Resolute Holdings spinoff
- FTAI Aviation’s Strategic Partnership and Financial Outlook
- FTAI Aviation launches Strategic Capital initiative
- FTAI Aviation sees FY25 adjusted EBITDA $1.1B-$1.15B
- FTAI Aviation price target raised to $168 from $148 at Morgan Stanley
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
