Metzler Ups Price Target, Estimates for MTU Aero Engines Amid 'More Constructive' View on OEM Profitability

06:06 AM EDT, 08/11/2026 (MT Newswires) -- Metzler Capital Markets raised its price target and earnings forecasts for MTU Aero Engines (MTX.F) as part of a model update, citing a "more constructive" outlook for the OEM division's profitability due to its spare parts business. "While the war in Iran has increased near-term volatility, MTU has seen no material impact on its business in H1/26, with no cancellations of shop visits or evidence of structural deferrals in either the OEM or [maintenance, repair and operations] markets. Despite flight-hour headwinds, industry-wide MRO demand continues to exceed available capacity, with lead times for shop visit slots exceeding six months, depending on the customer's engine type," according to a Monday note. "Furthermore, visibility in MRO remains high, led by the fact that capacity is already 80-90% booked for the full year at the beginning of the year. We believe another supportive factor is the relatively young age of the V2500 fleet, the main contributor to spare parts sales: <10% of engines are >25 years old, while >50% of the installed fleet has yet to undergo its second shop visit, where work scopes are getting heavier," analysts added. Against this backdrop, the research firm boosted its price target to 420 euros from 386 euros and raised its adjusted net income estimates for full-year 2026 through 2028 by up to 6%. Meanwhile, Metzler reiterated its buy rating on the stock, adding there is "no material change" to its investment case.