MTU Aero Engines: Commerzbank raises target price.

(CercleFinance.com) - Commerzbank is reiterating its "buy" recommendation on MTU Aero Engines, raising its target price to 125 euros (from 120 euros previously) after the group's capital market day which was considered "convincing".


After the meeting the analyst concludes that earnings burdens from the geared turbofan (GTF) engine ramp-up in 2017 will be offset by continued growth in maintenance, repair and overhaul (MRO), along with currency and positive mix effects.

"This is a material relief for our related concerns", the professional says, adjusting forecasts, which are now roughly in line with the consensus for 2016.

For 2019, Commerzbank forecasts a dividend per share that is 35% ahead of the consensus, saying that management's confidence should lead to an increased remuneration for shareholders.

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