12:03 PM EDT, 05/01/2026 (MT Newswires) -- Mwb Research raised its price target for MTU Aero Engines (MTX.F) after the German aircraft engine manufacturer's first-quarter results, highlighting a better-than-expected EBIT margin at its Original Equipment Manufacturing business.

"The street's conservative CCR estimates are simply wrong. OEM margin of 30.2% beat by 250bps on better spare engine mix and a 25% military ramp, directly refuting last week's bearish thesis. The 9% commercial OEM revenue miss is seasonal. The PW1100G drag reversed EUR 31m yoy and closes permanently in 2026, guidance was confirmed in full, and the 2030 CCR target of 75-99% remains still underappreciated. The lower end is only reached if MRO grows faster than modelled,"analysts said Thursday. "The bear case on CCR is volume outperformance, the same volume consensus undermodels on the top line while ignoring MTU's own guidance of a 50% MRO revenue increase between 2030 and 2035."

MTU's free cash flow reached 177 million euros in the quarter, well above the consensus estimate of 85 million euros.

The research firm also noted that two new catalysts have yet to be taken into account in its model, providing further upside to the stock. The buy recommendation was reiterated, with the price target increased to 530 euros from 520 euros.