MTU Aero Stock Rises on Commercial-Unit Margin Prospects
Stock Chart for MTU Aero Engines AG (MTX)
MTU Aero Engines Holding AG (MTX) rose the most in almost two months after an analyst at Bank of America Corp. predicted a “limited pick up” of earnings because of more profitable commercial-aerospace work.
MTU gained as much as 3 percent to 69.91 euros, the biggest intraday increase since July 4, and was trading up 1.3 percent at 11:58 a.m. in Frankfurt, valuing the manufacturer at 3.57 billion euros ($4.74 billion). The trading volume was 63 percent of the three-month daily average.
Margins at the Munich-based company are likely to recover as commercial new-engine volume will “grow strongly” this year, Celine Fornaro, a London-based analyst at Bank of America who raised her recommendation on MTU to neutral from underperform, wrote in a research report. Chief Financial Officer Reiner Winkler’s appointment to succeed Chief Executive Officer Egon Behle by the end of this year “may lead to new initiatives.”
Fornaro raised her share-price estimate to 70 euros from 64 euros.
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