FTAI Aviation shares plummeted 45% after a short seller report accused the aircraft leasing firm of financial manipulation and deceptive accounting practices. However, not everyone is convinced that the allegations hold water. BTIG analyst Andre Madrid remains bullish on FTAI’s prospects.
Madrid defends FTAI’s depreciation policy, citing a consistent approach across the company. The analyst notes that engines in FTAI’s leasing core have depreciated by about 20% of their useful life, which is lower than industry peers AerCap and Willis Lease Finance. Most recently acquired equipment consists of unserviceable engines, which are often used to supply modules and components for FTAI’s Aerospace Products operation.
Madrid believes FTAI is unique due to its “MRE business model” that brings together multiple services under one roof. He rates FTAI shares a Buy, with a $190 price target implying a potential 127% gain over the coming months. The stock retains a Strong Buy consensus rating from analysts, who see significant upside potential.
Source: https://www.tipranks.com/news/stay-long-and-strong-says-analyst-about-ftai-aviation-stock