FTAI Aviation's Stock Declines Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy FTAI?
FTAI Aviation Ltd's stock fell by 5.85% as it crossed below its 5-day SMA, reflecting a challenging trading environment.
Despite the recent announcement of a multi-year partnership with Palantir to enhance productivity and the establishment of FTAI Power for critical infrastructure, the stock's decline is attributed to sector rotation amid broader market weakness, with the Nasdaq-100 down 0.96% and S&P 500 down 0.09%.
The company's strategic initiatives, including the conversion of CFM56 engines into power turbines, are expected to open new revenue streams, but the current market conditions have overshadowed these positive developments.
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Analyst Views on FTAI
Wall Street analysts forecast FTAI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FTAI is 236.83 USD with a low forecast of 200.00 USD and a high forecast of 270.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 259.110
Low
200.00
Averages
236.83
High
270.00
Current: 259.110
Low
200.00
Averages
236.83
High
270.00
About FTAI
FTAI Aviation Ltd. owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. Its segments include Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees and customers. The Aerospace Products segment, through its maintenance facilities, equity method investment and exclusivity arrangements, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components for the CFM56-7B, CFM56-5B and V2500 commercial aircraft engines. Its propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to its airline, lessor, and maintenance, repair, and operations customer base. It also owns and leases jet aircraft, which often facilitates the acquisition of engines. It owns and manages over 421 aviation assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FTAI Aviation's Stock Surge Driven by Strategic Partnerships
- Strategic Partnership: FTAI's multi-year partnership with Palantir enables the use of its AI platform to enhance productivity, significantly improving inventory management and maintenance scheduling for equipment globally, thereby boosting operational efficiency.
- New Business Direction: The establishment of FTAI Power shifts the company's focus towards critical infrastructure equipment for data centers, with plans to convert CFM56 engines into power turbines, potentially opening new revenue streams and enhancing market competitiveness.
- Core Business Assurance: The multi-year agreement with CFM International ensures a steady supply of components for CFM56 engines, not only solidifying FTAI's core aircraft engine maintenance business but also mitigating risks for FTAI Power during its transition, ensuring business sustainability.
- Optimistic Market Outlook: FTAI's valuation aligns with the market's demand for AI and data center infrastructure, currently trading at 41 times forward earnings estimates, attracting investor interest, especially during significant market fluctuations.
See More
FTA Aviation Stock Soars with Strong Earnings and New Platform
- Earnings Beat Expectations: FTA Aviation reported Q2 2025 sales of $676.2 million, exceeding analysts' expectations of $542.6 million, indicating strong market demand and sales capability, thereby boosting investor confidence.
- Strong Profit Performance: The company posted earnings per share (EPS) of $1.57, significantly surpassing the expected $1.26, reflecting a notable improvement in profitability and driving the stock price up over 26% following the earnings announcement.
- Analyst Price Target Increases: Following the earnings report, analysts raised their price targets for FTA Aviation, with Citizens JMP increasing its target from $180 to $205 and BTIG from $190 to $230, indicating optimistic market expectations for the company's future growth.
- New Platform Launch: FTA Aviation announced the launch of the FTA Power platform, aiming to convert CFM56 engines into power solutions for data centers, expected to provide a 25-megawatt unit that enhances market competitiveness, especially as demand for AI computing continues to rise.
See More
Top Performing Industrials Stocks of January 2026
- FTAI Aviation Leads: FTAI Aviation tops the list with a remarkable 65.87% price increase over the past month, indicating strong recovery and heightened market confidence in the aviation sector.
- Bloom Energy's Strong Growth: Bloom Energy's stock surged by 54.82% in one month, reflecting its ongoing growth potential in the renewable energy sector and positive investor sentiment.
- L3Harris Highest Rating: Although L3Harris Technologies ranks sixth in performance, it boasts the highest Quant Rating of Strong Buy (4.60), showcasing strong market recognition of its long-term growth prospects.
- Stable Performance from CACI: CACI International's stock rose by 18.60% over the month and received a Buy rating (3.87) from the Quant system, highlighting its stability and growth potential in the defense and information technology sectors.
See More
FTAI Aviation Partners with Palantir for AI-Driven Production, Aiming for 100 Turbines Annually
- Strategic Partnership Strengthened: FTAI Aviation has signed a multiyear strategic partnership with GE Aerospace, securing OEM replacement part supply and performance upgrades for CFM International, which is expected to extend the operational lifespan of CFM56 engines, enhancing the company's competitiveness in the aircraft engine maintenance market.
- AI Technology Application: FTAI Aviation's collaboration with Palantir aims to leverage AI technology for faster production turnaround times and improved unit economics, which is projected to deliver significant cost savings to global customers and further drive company growth.
- New Business Launch: FTAI Aviation has introduced FTAI Power, planning to convert CFM56 engines into power turbines for data centers, with an expectation to deliver over 100 units annually by applying a modular maintenance model, addressing the growing demand for data center power.
- Optimistic Market Outlook: Although FTAI Aviation's stock trades at 43 times forward earnings, which may not seem compelling, the strategic partnerships with Palantir and GE Aerospace mitigate risks and could lead to future earnings upgrades, making it a stock worth monitoring for investors.
See More
FTAI Aviation Partners with Palantir for AI-Driven Power Turbines, Aiming for 100+ Units Annually
- Strategic Partnership: FTAI Aviation has signed a multiyear strategic partnership with Palantir to leverage AI technology for faster production turnaround times and improved unit economics, which is expected to deliver significant cost savings to customers globally.
- Power Business Launch: FTAI has launched its FTAI Power business, aiming to produce over 100 CFM56 power turbines annually by applying a modular maintenance model, thereby addressing the growing demand for power in data centers.
- Market Demand Leadership: The collaboration with GE Aerospace has been solidified through a multiyear agreement that ensures OEM replacement part supply and performance upgrades, which is anticipated to extend maintenance demand for CFM56 engines until 2027, enhancing competitive positioning.
- Valuation Outlook: Although FTAI trades at a high valuation of 43 times forward earnings, its long-term growth potential in aircraft engine servicing and the FTAI Power business, combined with strategic partnerships with industry leaders, mitigates investment risks and may lead to future earnings upgrades.
See More
FTAI Aviation and Hexcel: Dual Investment Opportunities in Aerospace
- Market Outlook: FTAI Aviation focuses on the aerospace aftermarket while Hexcel's composite materials are used in the OEM market, allowing investors to benefit from both strong aircraft production and delays faced by airlines, creating a complementary investment portfolio.
- Competition and Collaboration: FTAI competes with GE Aerospace while also supporting its engine sales, particularly in maintaining CFM56 engines, and will service CFM's newer LEAP engines in the future, enhancing its position in the aviation maintenance market.
- AI-Driven Growth: FTAI's stock has surged recently, primarily due to the launch of FTAI Power, which converts CFM56 engines into power turbines for data centers to meet the growing demand for AI, showcasing FTAI's potential in emerging markets.
- Hexcel's Long-Term Growth: Hexcel's composite materials play a crucial role in the future of the aerospace industry, with increasing demand for composites in new aircraft, particularly as the 737 MAX's composite usage rises from 5% to 15%, positioning Hexcel to benefit from the growth in aircraft production.
See More
FTAI Aviation's Stock Surge Driven by Strategic Partnerships
- Strategic Partnership: FTAI's multi-year partnership with Palantir enables the use of its AI platform to enhance productivity, significantly improving inventory management and maintenance scheduling for equipment globally, thereby boosting operational efficiency.
- New Business Direction: The establishment of FTAI Power shifts the company's focus towards critical infrastructure equipment for data centers, with plans to convert CFM56 engines into power turbines, potentially opening new revenue streams and enhancing market competitiveness.
- Core Business Assurance: The multi-year agreement with CFM International ensures a steady supply of components for CFM56 engines, not only solidifying FTAI's core aircraft engine maintenance business but also mitigating risks for FTAI Power during its transition, ensuring business sustainability.
- Optimistic Market Outlook: FTAI's valuation aligns with the market's demand for AI and data center infrastructure, currently trading at 41 times forward earnings estimates, attracting investor interest, especially during significant market fluctuations.
See More
FTA Aviation Stock Soars with Strong Earnings and New Platform
- Earnings Beat Expectations: FTA Aviation reported Q2 2025 sales of $676.2 million, exceeding analysts' expectations of $542.6 million, indicating strong market demand and sales capability, thereby boosting investor confidence.
- Strong Profit Performance: The company posted earnings per share (EPS) of $1.57, significantly surpassing the expected $1.26, reflecting a notable improvement in profitability and driving the stock price up over 26% following the earnings announcement.
- Analyst Price Target Increases: Following the earnings report, analysts raised their price targets for FTA Aviation, with Citizens JMP increasing its target from $180 to $205 and BTIG from $190 to $230, indicating optimistic market expectations for the company's future growth.
- New Platform Launch: FTA Aviation announced the launch of the FTA Power platform, aiming to convert CFM56 engines into power solutions for data centers, expected to provide a 25-megawatt unit that enhances market competitiveness, especially as demand for AI computing continues to rise.
See More
Top Performing Industrials Stocks of January 2026
- FTAI Aviation Leads: FTAI Aviation tops the list with a remarkable 65.87% price increase over the past month, indicating strong recovery and heightened market confidence in the aviation sector.
- Bloom Energy's Strong Growth: Bloom Energy's stock surged by 54.82% in one month, reflecting its ongoing growth potential in the renewable energy sector and positive investor sentiment.
- L3Harris Highest Rating: Although L3Harris Technologies ranks sixth in performance, it boasts the highest Quant Rating of Strong Buy (4.60), showcasing strong market recognition of its long-term growth prospects.
- Stable Performance from CACI: CACI International's stock rose by 18.60% over the month and received a Buy rating (3.87) from the Quant system, highlighting its stability and growth potential in the defense and information technology sectors.
See More
FTAI Aviation Partners with Palantir for AI-Driven Production, Aiming for 100 Turbines Annually
- Strategic Partnership Strengthened: FTAI Aviation has signed a multiyear strategic partnership with GE Aerospace, securing OEM replacement part supply and performance upgrades for CFM International, which is expected to extend the operational lifespan of CFM56 engines, enhancing the company's competitiveness in the aircraft engine maintenance market.
- AI Technology Application: FTAI Aviation's collaboration with Palantir aims to leverage AI technology for faster production turnaround times and improved unit economics, which is projected to deliver significant cost savings to global customers and further drive company growth.
- New Business Launch: FTAI Aviation has introduced FTAI Power, planning to convert CFM56 engines into power turbines for data centers, with an expectation to deliver over 100 units annually by applying a modular maintenance model, addressing the growing demand for data center power.
- Optimistic Market Outlook: Although FTAI Aviation's stock trades at 43 times forward earnings, which may not seem compelling, the strategic partnerships with Palantir and GE Aerospace mitigate risks and could lead to future earnings upgrades, making it a stock worth monitoring for investors.
See More
FTAI Aviation Partners with Palantir for AI-Driven Power Turbines, Aiming for 100+ Units Annually
- Strategic Partnership: FTAI Aviation has signed a multiyear strategic partnership with Palantir to leverage AI technology for faster production turnaround times and improved unit economics, which is expected to deliver significant cost savings to customers globally.
- Power Business Launch: FTAI has launched its FTAI Power business, aiming to produce over 100 CFM56 power turbines annually by applying a modular maintenance model, thereby addressing the growing demand for power in data centers.
- Market Demand Leadership: The collaboration with GE Aerospace has been solidified through a multiyear agreement that ensures OEM replacement part supply and performance upgrades, which is anticipated to extend maintenance demand for CFM56 engines until 2027, enhancing competitive positioning.
- Valuation Outlook: Although FTAI trades at a high valuation of 43 times forward earnings, its long-term growth potential in aircraft engine servicing and the FTAI Power business, combined with strategic partnerships with industry leaders, mitigates investment risks and may lead to future earnings upgrades.
See More
FTAI Aviation and Hexcel: Dual Investment Opportunities in Aerospace
- Market Outlook: FTAI Aviation focuses on the aerospace aftermarket while Hexcel's composite materials are used in the OEM market, allowing investors to benefit from both strong aircraft production and delays faced by airlines, creating a complementary investment portfolio.
- Competition and Collaboration: FTAI competes with GE Aerospace while also supporting its engine sales, particularly in maintaining CFM56 engines, and will service CFM's newer LEAP engines in the future, enhancing its position in the aviation maintenance market.
- AI-Driven Growth: FTAI's stock has surged recently, primarily due to the launch of FTAI Power, which converts CFM56 engines into power turbines for data centers to meet the growing demand for AI, showcasing FTAI's potential in emerging markets.
- Hexcel's Long-Term Growth: Hexcel's composite materials play a crucial role in the future of the aerospace industry, with increasing demand for composites in new aircraft, particularly as the 737 MAX's composite usage rises from 5% to 15%, positioning Hexcel to benefit from the growth in aircraft production.
See More
