AAR (NYSE:AIR) Given “Outperform” Rating at Royal Bank Of Canada

AAR (NYSE:AIR)‘s stock had its “outperform” rating reaffirmed by Royal Bank Of Canada in a research report issued to clients and investors on Monday, Marketbeat Ratings reports. They currently have a $145.00 target price on the aerospace company’s stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 42.55% from the stock’s current price.

A number of other brokerages have also recently commented on AIR. KeyCorp reiterated a “sector weight” rating on shares of AAR in a research note on Wednesday, July 22nd. Jefferies Financial Group lifted their price objective on AAR from $150.00 to $155.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Truist Financial lifted their price objective on AAR from $128.00 to $145.00 and gave the company a “buy” rating in a research note on Monday, July 27th. Guggenheim initiated coverage on AAR in a research note on Monday, September 14th. They issued a “neutral” rating for the company. Finally, Weiss Ratings cut AAR from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 25th. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $140.60.

AAR Trading Down 4.7%

AAR stock traded down $5.03 during midday trading on Monday, reaching $101.72. 1,431,646 shares of the stock traded hands, compared to its average volume of 481,831. The company has a 50-day simple moving average of $131.46 and a two-hundred day simple moving average of $123.84. AAR has a 12-month low of $76.10 and a 12-month high of $154.00. The firm has a market cap of $4.06 billion, a PE ratio of 20.84 and a beta of 1.11. The company has a current ratio of 2.84, a quick ratio of 1.24 and a debt-to-equity ratio of 0.52.

AAR (NYSE:AIR) last announced its earnings results on Monday, September 28th. The aerospace company reported $1.49 EPS for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $878.81 million. During the same period last year, the business posted $1.08 EPS. AAR’s revenue for the quarter was up 24.1% on a year-over-year basis. Research analysts expect that AAR will post 5.92 earnings per share for the current fiscal year.

Institutional Investors Weigh In On AAR

Hedge funds and other institutional investors have recently made changes to their positions in the business. Oppenheimer Asset Management Inc. acquired a new stake in shares of AAR during the 2nd quarter worth about $3,630,000. Deutsche Bank AG acquired a new stake in shares of AAR during the 2nd quarter worth about $8,640,000. First Trust Advisors LP raised its position in shares of AAR by 20.4% during the 1st quarter. First Trust Advisors LP now owns 90,749 shares of the aerospace company’s stock worth $9,933,000 after acquiring an additional 15,345 shares in the last quarter. EFG International AG acquired a new stake in shares of AAR during the 2nd quarter worth about $4,111,000. Finally, Jupiter Topco LLC acquired a new stake in shares of AAR during the 2nd quarter worth about $24,861,000. Institutional investors and hedge funds own 90.74% of the company’s stock.

More AAR News

Here are the key news stories impacting AAR this week:

• Positive Sentiment: AAR reported first-quarter revenue of $918 million, up 24% year over year and above the $878.8 million consensus estimate. Adjusted diluted EPS of $1.49 also exceeded expectations of $1.30, while adjusted EBITDA increased 34%. AAR Reports First-Quarter Results
• Positive Sentiment: Management issued second-quarter revenue guidance of $906.6 million to $922.5 million, above the approximately $893.5 million analyst consensus, reflecting continued strength in commercial aftermarket demand. AAR MRO Holdings Announcement
• Positive Sentiment: Jefferies raised its price target for AAR to $160, while management said the MRO Holdings transaction could lift adjusted EBITDA margins to 19%–20% over three to four years through higher-margin operations and expected cost synergies. Jefferies Raises AAR Price Target
• Neutral Sentiment: AAR’s earnings call focused on integration plans, MRO Holdings’ margin profile, financing, leverage reduction and the effect of legacy programs on profitability. These factors are likely to determine whether the acquisition creates value.
• Negative Sentiment: The planned purchase of a 65% controlling interest in MRO Holdings carries an implied enterprise value of roughly $4 billion. Funding includes new debt and approximately $1 billion of equity issuance, increasing dilution and pushing expected net leverage to about 3.6 times at closing. Investors appear concerned about balance-sheet risk and integration execution. AAR Margin Targets and MRO Holdings Deal
• Negative Sentiment: Zacks Research downgraded AAR from “strong buy” to “hold,” and commentary has characterized the stock as richly valued after the deal announcement, adding pressure to sentiment despite the earnings beat.

About AAR

AAR Corp. is a global aviation services company headquartered in Wood Dale, Illinois. The company supports commercial airlines, government and defense organizations, and original equipment manufacturers through aftermarket aviation products and services.

AAR’s aviation activities include the distribution and sale of aircraft parts, maintenance, repair and overhaul services, component repair, engineering support, and supply-chain management. Its parts and services support a range of commercial, government, and military aircraft, helping customers maintain aircraft availability and operational readiness.

The company also provides expeditionary and mobility-related products and services for government customers, including systems and equipment used to support transportation and logistics operations.