MTU undervalued despite resolving aerospace engine issue, potential 85% upside seen.

MTU, a leading aerospace engine specialist, is currently undervalued due to a temporary manufacturing issue in the Pratt & Whitney Geared Turbofan program. The problem, which is not MTU's fault, caused a significant drop in its stock price compared to peers like Safran. As MTU's free cash flow returns to normal, the valuation gap is expected to close, potentially offering an 85% upside to fair value at €540. Market sentiment has driven recent aerospace aftermarket stock prices, diverging from the strong fundamentals of companies like MTU.