Royal Bank Of Canada Reaffirms “Outperform” Rating for AAR (NYSE:AIR)

AAR (NYSE:AIR)‘s stock had its “outperform” rating reissued by stock analysts at Royal Bank Of Canada in a research note issued on Monday, Marketbeat.com reports. They presently have a $145.00 target price on the aerospace company’s stock. Royal Bank Of Canada’s price objective would indicate a potential upside of 41.19% from the company’s current price.

Several other research firms have also recently weighed in on AIR. KeyCorp restated a “sector weight” rating on shares of AAR in a research report on Wednesday, July 22nd. Truist Financial increased their price target on shares of AAR from $128.00 to $145.00 and gave the company a “buy” rating in a research note on Monday, July 27th. Zacks Research raised shares of AAR from a “hold” rating to a “strong-buy” rating in a report on Friday, July 10th. Wall Street Zen cut shares of AAR from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, Weiss Ratings lowered AAR from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $140.60.

AAR Price Performance

AIR stock traded down $4.05 during midday trading on Monday, reaching $102.70. 553,102 shares of the company’s stock traded hands, compared to its average volume of 476,915. The company has a 50-day simple moving average of $131.46 and a two-hundred day simple moving average of $123.84. The company has a quick ratio of 1.24, a current ratio of 2.84 and a debt-to-equity ratio of 0.52. AAR has a 1-year low of $76.10 and a 1-year high of $154.00. The company has a market cap of $4.10 billion, a price-to-earnings ratio of 21.02 and a beta of 1.11.

AAR (NYSE:AIR) last announced its earnings results on Monday, September 28th. The aerospace company reported $1.49 EPS for the quarter, topping the consensus estimate of $1.30 by $0.19. AAR had a return on equity of 13.20% and a net margin of 5.55%.The company had revenue of $918.00 million for the quarter, compared to analysts’ expectations of $878.81 million. During the same quarter in the prior year, the business earned $1.08 earnings per share. The business’s revenue for the quarter was up 24.1% on a year-over-year basis. On average, analysts anticipate that AAR will post 5.92 earnings per share for the current year.

Institutional Investors Weigh In On AAR

Large investors have recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of AAR during the second quarter worth $925,068,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of AAR in the 2nd quarter valued at $84,251,000. Geode Capital Management LLC raised its stake in AAR by 9.4% during the 4th quarter. Geode Capital Management LLC now owns 920,743 shares of the aerospace company’s stock worth $76,239,000 after buying an additional 78,810 shares during the period. Principal Financial Group Inc. raised its stake in AAR by 4.9% during the 1st quarter. Principal Financial Group Inc. now owns 675,686 shares of the aerospace company’s stock worth $73,961,000 after buying an additional 31,583 shares during the period. Finally, Emerald Advisers LLC lifted its holdings in AAR by 6.3% during the first quarter. Emerald Advisers LLC now owns 445,693 shares of the aerospace company’s stock worth $48,786,000 after acquiring an additional 26,223 shares in the last quarter. Institutional investors own 90.74% of the company’s stock.

Key Stories Impacting AAR

Here are the key news stories impacting AAR this week:

• Positive Sentiment: AAR reported fiscal Q1 2027 revenue of $918 million, up 24.1% year over year, while adjusted EPS of $1.49 exceeded the $1.30 analyst consensus. Commercial sales rose 28%, government sales increased 14%, and operating cash flow improved to $55.8 million. AAR reports first quarter fiscal year 2027 results
• Positive Sentiment: The company raised its second-quarter revenue outlook to $906.6 million-$922.5 million, above the approximately $893.5 million consensus estimate, supporting expectations for continued growth.
• Positive Sentiment: Jefferies raised its price target for AAR to $160, indicating continued confidence in the company’s long-term aerospace aftermarket opportunity. Jefferies raises AAR price target
• Neutral Sentiment: AAR agreed to acquire a 65% controlling interest in MRO Holdings for an implied enterprise value of about $4 billion. Management expects the deal to add more than $1 billion in revenue, lift adjusted EBITDA margins from roughly 12% to 16% before synergies, become accretive to adjusted EPS in the first full fiscal year, and support a longer-term margin target of 19%-20%. AAR acquisition announcement
• Negative Sentiment: Investor reaction has focused on the acquisition’s funding requirements. The transaction involves substantial new debt, approximately $780 million of stock issued to MRO owners and a roughly $230 million PIPE offering. Net leverage is expected to rise to about 3.6 times at closing, increasing dilution, balance-sheet and integration risk.
• Negative Sentiment: Zacks Research downgraded AAR from “strong buy” to “hold,” adding near-term pressure despite the earnings beat and improved guidance.

About AAR

AAR Corp. is a global provider of aviation services supporting commercial aviation, government and defense customers. The company supplies aircraft parts and equipment, manages inventory and logistics, and provides maintenance, repair and overhaul services for aircraft and components.

AAR’s offerings include parts distribution, supply-chain management, aircraft maintenance, airframe and component repair, and mobility solutions for government and defense operators. Its services are designed to help airlines, aircraft operators and government agencies maintain fleet readiness and manage aviation assets.

Founded in 1955, AAR is headquartered in Wood Dale, Illinois, and serves customers across North America, Europe, Asia and other international markets.