FTAI selloff brings ‘very attractive’ entry point, says Wolfe Research

Wolfe Research says the Muddy Waters short report on FTAI Aviation (FTAI) does not appear to consider the impact of the company’s recently announced Strategic Capital Initiative. The initiative is a key driver to future positive earnings revisions and also goes to addressing two of Wolfe’s prior concerns – capital intensity and penetration, the analyst tells investors in a research note. Second, the majority of the report should come of no surprise to investors as Wolfe has frequently written about FTAI’s “unique” accounting and overall business complexity, adds the analyst. At the same time, the report makes some assumptions Wolfe wouldn’t agree with based on its knowledge of FTAI and conversations with management. Wolfe says that while it could be a “rocky period” near-term for FTAI, it sees the stock selloff as a “very attractive” entry point. The firm has an Outperform rating on FTAI with a $190 price target