We Increase MTU Aero's FVE Slightly to EUR 210

MTU Aero is a leading aero engine component supplier and independent maintenance, repair, and overhaul, or MRO, provider. With high narrow-body aircraft exposure, it is well-positioned to benefit from the long-term growth outlook of the aerospace industry. Despite short- to medium-term demand pressure as a result of COVID-19, air travel demand is still forecast to grow at 3.5% per year for the next 20 years and it is estimated the industry will require 14,500 new deliveries just to replace the existing fleet by 2040. Narrow-body deliveries will constitute 80% of all new delivered aircraft.