CIti double-upgrades MTU to 'buy' on improving cash generation

Safran SA

24/09/2026 07:46

** Citi upgrades Germany's MTU Aero Engines MTXGn.DE 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 SAF.PA 
** 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))