MTU Aero Engines Boosts 2024 Profit Forecast to Over €1 Billion
MTU Aero Engines has revised its profit forecast for the fiscal year 2024, now expecting an adjusted profit of over one billion euros, a significant increase from its previous target of 950 to 980 million euros. This upward revision comes amidst a strong stock market performance and impressive financial results so far this year.
The company's stock has gained 56 percent in 2024, reaching a record high of 306 euros, reflecting investor confidence in its growth potential. MTU's adjusted operating result for the first nine months rose by around 25 percent to 744 million euros, while revenue increased by almost 15 percent to 5.3 billion euros, keeping it on track to meet its unchanged revenue target of 7.3 to 7.5 billion euros for the full year.
Analysts have responded positively to these developments. Jefferies has set a stock price target of 470 euros for MTU, while JPMorgan's David Perry has set a target of 370 euros. On average, analysts expect the MTU Aero Engines stock price to reach around 394.44 euros by the end of the financial year 2024. If MTU exceeds one billion euros in profit, it would mark a substantial increase from the 820 million euros reported in 2023.
MTU's upward revision of its profit forecast, coupled with its strong stock market performance and positive analyst sentiment, suggests a robust outlook for the company. Despite keeping its revenue target unchanged, MTU's impressive financial results so far this year indicate that it is well-positioned to capitalize on sector momentum and deliver on its growth potential.
