FTAI Stock Forecast & Price Target

FTAI Aviation is well-positioned within the MRO market with a diverse portfolio of engines and capabilities, a growing joint venture for PMA parts, and strategic partnerships with both major narrowbody engine OEMs. With the high demand for engine maintenance, the company is likely to continue seeing strong growth and earnings. Additionally, their transition to a capital light alternative asset management business with the launch of SCI I and anticipated launch of SCI II should have positive implications for the company's valuation multiple. However, potential risks to consider include economic and regulatory risks, as well as potential defaults from lessees that could impact cash flow.

FTAI Aviation is currently facing significant challenges, including an uncertain market due to COVID-19, a shift away from a spread-based leasing business, and potential re-categorization as a financial services company. Additionally, the company's focus on CFM56 and V2500 engines may put them at a disadvantage as next-gen engines become a larger share of the market. While FTAI may benefit in the short term from a potential inclusion in the S&P 500, there are long-term risks and uncertainties that could impact the company's future performance. We have a negative outlook on this stock.