What Happened?
Shares of aircraft leasing company FTAI Aviation (NASDAQ: FTAI) jumped 3.1% in the afternoon session after Citi reiterated its "Buy" rating and opened a 90-day positive catalyst watch on the shares. The investment bank anticipates that FTAI will secure final Parts Manufacturer Approval (PMA) for its CFM56 engine modules within the next three months. This approval is significant as it would allow the company to manufacture and sell its own engine parts, a move that Citi believes could substantially increase engine module volumes and boost free cash flow.
After the initial pop the shares cooled down to $113.02, up 2.4% from previous close.
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What Is The Market Telling Us
FTAI Aviation’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
FTAI Aviation is down 21.8% since the beginning of the year, and at $113.02 per share, it is trading 35.4% below its 52-week high of $174.96 from November 2024. Investors who bought $1,000 worth of FTAI Aviation’s shares 5 years ago would now be looking at an investment worth $8,517.
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