BofA Expects 'Solid' Q2 for MTU Aero Engines; Price Objective, Forecasts Up
MTU Aero Engines (MTX.F) is projected to deliver a "solid" second quarter, with BofA Global Research upwardly revising its price objective and forecasts for the German aircraft engine maker. "We expect MTU to deliver a solid quarter in Commercial [Original Equipment Manufacturer] and aftermarket, with organic USD gross revenue growth of c.12% in OE and c.13% in spares. However, growth comparisons are complicated by the unusually strong benefit from spares and favourable mix pricing in 2Q25," analysts said in a Wednesday earnings preview note. "Margins should remain robust in 2Q with strong spares offsetting a partial unwind in the spare engine ratio. Reflecting the stronger-than-expected trends seen across the aftermarket, we have increased our FY26 spares growth assumption to 12% from 10%, supported by robust demand trends 1H26. The [Geared Turbofan] normalisation continues at pace, which is encouraging." As such, the buy rating on the stock was reaffirmed, while the price objective was increased to 410 euros from 330 euros as analysts reverted to their pre-conflict valuation methodology. The research firm also raised its adjusted EPS estimates by 2.3% for 2026, 3% for.
MTU Aero Engines (MTX.F) is projected to deliver a "solid" second quarter, with BofA Global Research upwardly revising its price objective and forecasts for the German aircraft engine maker. "We expect MTU to deliver a solid quarter in Commercial [Original Equipment Manufacturer] and aftermarket, with organic USD gross revenue growth of c.12% in OE and c.13% in spares.
However, growth comparisons are complicated by the unusually strong benefit from spares and favourable mix pricing in 2Q25," analysts said in a Wednesday earnings preview note. "Margins should remain robust in 2Q with strong spares offsetting a partial unwind in the spare engine ratio.
Reflecting the stronger-than-expected trends seen across the aftermarket, we have increased our FY26 spares growth assumption to 12% from 10%, supported by robust demand trends 1H26.
The [Geared Turbofan] normalisation continues at pace, which is encouraging." As such, the buy rating on the stock was reaffirmed, while the price objective was increased to 410 euros from 330 euros as analysts reverted to their pre-conflict valuation methodology.
The research firm also raised its adjusted EPS estimates by 2.3% for 2026, 3% for.