Investing.com -- MTU Aero Engines shares rose about 3.5% to €317.5 on Friday, benefiting from a broader rally across European aerospace stocks following a bullish sector note from Berenberg, alongside improving global risk sentiment.
While initial market commentary attributed the move primarily to easing geopolitical concerns surrounding the Iran conflict and a wider risk-on environment, a more direct catalyst emerged from Berenberg’s reassessment of European engine manufacturers.
Berenberg’s analysis highlighted the relative resilience of engine makers amid a jet-fuel price shock scenario linked to the U.S.-Iran conflict.
Although Rolls-Royce was identified as the strongest positioned company due to its younger fleet profile and higher flight-hour growth, MTU also benefited from renewed investor interest in aerospace aftermarket and engine-service providers.
The rally came despite Berenberg’s data showing MTU’s programme-weighted, thrust-adjusted flight hours declining 1% year-to-date, compared with growth of 5% for Rolls-Royce and 2% for Safran.
MTU’s adjusted fleet age of 14.5 years was also the oldest among the three companies, while Middle East flying hours fell 23% year-to-date.
Beyond sector dynamics, MTU continues to be supported by solid operational execution. In its latest quarterly results, the company reported 7% revenue growth to €2.2 billion, strong commercial MRO expansion, improved free cash flow and reaffirmed full-year guidance.
Analyst sentiment remains constructive, with consensus ratings skewing toward Buy recommendations.
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