Compass Point keeps a Buy rating on FTAI Aviation with a $181 price target after the company announced its “Strategic Capital initiative.” All of the engines that are part of this partnership will be powered by FTAI’s maintenance, repair and exchange solution that should provide material growth for the company’s aerospace products segment, the analyst tells investors in a research note. Compass says the announcement is “transformative” for FTAI. It makes the company’s business significantly less capital intensive and shifts the mix of EBITDA to capital light aerospace products “that merit a significantly higher multiple than leasing,” contends the firm. It believes the announcement could support incremental multiple expansion for FTAI and support its view that the company should be valued on a consolidated basis as opposed to a sum-of-the-parts methodology, with a lower multiple applied to the leasing segment. The announcement could also remove any pushback from some investors who had believed FTAI’s exposure to leasing would be an overhang on the company’s multiple in the future, contends Compass Point.