In this fundamental analysis report, analysts Isak Andersson and Viktor Komarek take a closer look at
CTT Systems, a Swedish aerospace technology company developing and supplying active humidity
control systems for commercial aircraft. As the sole supplier of these systems to Airbus and Boeing,
CTT has built a growing installed base that generates recurring aftermarket revenues. Despite strong
underlying demand, the CTT share price has been heavily pressured by distributor inventory effects,
foreign exchange headwinds, institutional outflows, and broader concerns surrounding the
aerospace industry. The analysts estimate that recovering aircraft production rates, higher humidifier
penetration in passenger cabins, and increased adoption of fuel-saving de-humidifier solutions will
drive significant earnings growth over the coming years. An equally weighted DCF and peer valuation,
using a 2027E EV/EBIT target multiple of 15.2x and a TGR of 2.0%, implies an upside of 50.0%.
Investment Thesis
- Recovery in widebody aircraft production drives OEM growth
- Higher humidifier penetration in passenger cabins increases revenue per aircraft
- Elevated fuel prices support de-humidifier adoption and retrofit demand