BUZZ - Citi upgrades MTU rating by two levels to "Buy" due to improved cash flow situation
路透社2026/09/24 06:56September 24 - ** Citi has upgraded Germany's MTU Aero Engines AG (MTXGn.DE) rating from "Sell" to "Buy," stating that the growth of its maintenance business should boost its cash generation capability.
** The brokerage said that as the aircraft engine maker's maintenance business expands and GTF engine issues gradually ease, its outlook is improving.
** It is expected that its cash conversion rate will rise from about 55% in 2026 to 80%–90% in 2030.
** Citi also predicts that between 2026 and 2031, MTU's EBIT (earnings before interest and taxes) will grow at an average annual rate of approximately 8.5%.
** The brokerage said that improved cash generation could help narrow MTU's valuation discount compared to peers such as Safran (SAF.PA).
** The institution raised its target price to 445 euros, implying about 25% upside.
** MTU shares rose 2.6% in pre-market trading.
** Out of 23 analysts covering MTU Aero Engines AG, 14 gave it a "Strong Buy" or "Buy" rating, 6 gave a "Hold" rating, and 3 gave a "Strong Sell" or "Sell" rating — London Stock Exchange Group (LSEG) data.
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