FTAI Aviation's (FTAI) Q2 results were supported by growth in its power business, increased maintenance, repair, and exchange, or MRE, capacity, and strong Aviation Products revenue growth, RBC Capital Markets said in a note Thursday.
Investors remain focused on the impact of ongoing investments on Aviation Products margins, analysts said, adding that they believe the company's sum-of-the-parts valuation offers significant upside if the company executes its power growth strategy.
Looking beyond the company's softer 2026 outlook, FTAI introduced a 2027 adjusted earnings before interest, taxes, depreciation, and amortization guide of $2.3 billion, driven by growth across Aviation Products, FTAI Power, and Aviation Leasing, analysts said.
The investment firm added that while the 2027 FTAI Power EBITDA outlook initially came in below investor expectations, management noted there is potential upside, as the forecast represents the low end of its expected range and does not include additional Mod-1 deliveries.
RBC Capital Markets maintained its outperform rating and $300 price target on FTAI Aviation.
Shares of the company were up 3.2% in Friday trading.
Price: $203.86, Change: $+6.36, Percent Change: +3.22%