FTAI Aviation Ltd. (FTAI): A Bull Case Theory

We came across a bullish thesis on FTAI Aviation Ltd. on Bullseye Picks’s Substack by Bullseye Investing. In this article, we will summarize the bulls’ thesis on FTAI. FTAI Aviation Ltd.'s share was trading at $276.01 as of January 29th. FTAI’s trailing and forward P/E were 63.16 and 34.25 respectively according to Yahoo Finance.

FTAI Aviation (FTAI) operates as an aircraft equipment manufacturer and lessor with exposure across two core segments: Aerospace Products and Aviation Leasing, positioning the company at the intersection of aviation asset ownership and high-margin aftermarket services. The Aerospace Products business has become a key growth engine, benefiting from strong demand for aircraft engine modules and parts, while Aviation Leasing provides recurring cash flows through long-term leases to airlines and operators.

FTAI has delivered exceptional financial performance, with revenues growing 51% year-over-year, underscoring the scalability of its model and the strength of demand across its portfolio. The company’s return on equity stands at an eye-catching 263%, reflecting both operational leverage and a capital structure that amplifies equity returns.

Valuation remains the primary concern for investors. FTAI currently trades at roughly 38x trailing earnings, which appears elevated relative to traditional aviation peers, though this multiple compresses to approximately 21x forward earnings as earnings growth accelerates. The company previously faced accounting-related scrutiny, which created uncertainty around the business, but those issues were ultimately found to be unfounded, helping restore confidence and drive a strong rerating in the stock.

Following a significant run-up and another solid quarterly performance, the shares now embed high expectations, making entry timing more sensitive to broader market pullbacks or company-specific volatility. Despite valuation concerns, the underlying fundamentals remain compelling. FTAI combines rapid growth, strong asset economics, and expanding aftermarket exposure, which together support durable cash generation over the long term. While patience may be warranted to secure a more attractive entry point, a meaningful drawdown could present an opportunity to reenter a high-quality aviation platform with proven execution and substantial long-term upside.

Previously, we covered a bullish thesis on FTAI Aviation Ltd. (FTAI) by Komodo Capital in March 2025, which highlighted the company’s vertically integrated MRO model, pricing power from engine supply constraints, PMA-driven margin expansion, and multiple rerating potential. FTAI’s stock price has appreciated by approximately 167.34% since our coverage. This is because the thesis played out as operational leverage and aftermarket growth materialized. Bullseye Investing shares a similar view but emphasizes valuation discipline and entry-point risk following the sharp run-up.

FTAI Aviation Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held FTAI at the end of the third quarter which was 48 in the previous quarter. While we acknowledge the risk and potential of FTAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FTAI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.