FTAI Aviation (FTAI) PT Lowered to $100 at Stifel

Stifel analyst Frank Galanti lowered the price target on FTAI Aviation (NASDAQ: FTAI) to $100.00 (from $167.00) while maintaining a Buy rating.

The analyst comments "FTAI released an 8-K this morning, which had a transcript of the CEO, Mr. Adams, addressing the Muddy Waters short report. The prepared remarks addressed the depreciation claim but did not discuss the number of modules being sold vs. whole engines. As a result, the stock fell 25%, as the omission makes it seem more likely that the company is selling a significant portion of whole engines in its aerospace adjusted EBITDA. While we don't know the actual percentage - Muddy Waters claimed it's ~80%, we had previously written it's likely closer to 20% - we think the omission could mean it is higher than our assumption. As a result, we are taking down our price target to assume only 50% of the aerospace segment is from modules, which is the basis of our new $100 target. However, we need the percentage from management to have high conviction in the name."

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