Stock Story -
What Happened: Shares of aircraft leasing company FTAI Aviation (NASDAQ:FTAI) jumped 9.2% in the morning session after Stifel analyst upgraded the stock's rating from Hold to Buy and raised the price target from $69 to $132. The new price target implied a potential 16% upside from where shares traded before the upgrade was announced. The analyst added, "the stock is worth buying given industry dynamics, even if considered expensive."
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What is the market telling us: FTAI Aviation's shares are somewhat volatile and over the last year have had 9 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago, when the company dropped 7.7% on the news that Wolfe Research analyst Myles Walton downgraded the stock's rating from Outperform (Buy) to Peer Perform (Hold). The analyst cited some reasons for the downgrade, adding, "Following a big run in the stock, we are running out of valuation runway even with anticipated potential positive revisions...Shares of FTAI have moved in a straight line as investors have found FTAI as a small- and mid-cap way to play the aerospace aftermarket."
FTAI Aviation is up 149% since the beginning of the year, and at $112.75 per share, has set a new 52-week high. Investors who bought $1,000 worth of FTAI Aviation's shares 5 years ago would now be looking at an investment worth $7,528.
