BUZZ — CIti double — upgrades MTU to 'buy' on improving cash generation
* Citi upgrades Germany's MTU Aero Engines to "buy" from "sell", saying growth in its service business should boost cash generation * The broker says the aircraft engine maker's outlook is improving as its engine servicing business grows and GTF engine issues ease * It expects cash conversion to rise from about 55% in 2026 to 80% to 90% by 2030 * Citi also forecasts EBIT growth of about 8.5% annually over 2026 to 2031 * The broker says improving cash generation could help narrow MTU's valuation discount to peer Safran * It raises its PT to €445, implying about 25% upside * Shares in MTU are seen up 2.6% in pre-market trade * Out of 23 analysts that cover MTU Aero Engines AG, 14 rate the stock "strong buy" or "buy," six rate "hold" and three rate the stock "strong sell" or "sell" -- LSEG data (Reporting by Aleksandra Kret in Gdansk) ((aleksandra.kret@thomsonreuters.com)