Aug. 29 (Bloomberg) -- MTU Aero Engines Holding AG 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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