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

AAR (NYSE:AIR)‘s stock had its “outperform” rating reiterated by analysts at Royal Bank Of Canada in a report released on Monday, Marketbeat reports. They currently have a $145.00 price objective on the aerospace company’s stock. Royal Bank Of Canada’s target price suggests a potential upside of 42.55% from the stock’s current price.

Other analysts also recently issued research reports about the stock. Zacks Research raised shares of AAR from a “hold” rating to a “strong-buy” rating in a report on Friday, July 10th. Weiss Ratings cut shares of AAR from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday. Guggenheim began coverage on shares of AAR in a research report on Monday, September 14th. They issued a “neutral” rating for the company. Truist Financial increased their price target on AAR from $128.00 to $145.00 and gave the company a “buy” rating in a report on Monday, July 27th. Finally, KeyCorp reaffirmed a “sector weight” rating on shares of AAR in a research report on Wednesday, July 22nd. Four research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $140.60.

AAR Stock Down 4.7%

AIR traded down $5.03 during trading on Monday, hitting $101.72. 1,426,345 shares of the company’s stock traded hands, compared to its average volume of 479,848. The stock has a market capitalization of $4.06 billion, a price-to-earnings ratio of 20.84 and a beta of 1.11. The company’s 50 day simple moving average is $131.46 and its two-hundred day simple moving average is $123.84. AAR has a 12-month low of $76.10 and a 12-month high of $154.00. 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 quarterly earnings results on Monday, September 28th. The aerospace company reported $1.49 earnings per share (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 firm had revenue of $918.00 million for the quarter, compared to the consensus estimate of $878.81 million. During the same period in the prior year, the company posted $1.08 earnings per share. The company’s quarterly revenue was up 24.1% on a year-over-year basis. Analysts predict 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 added to or reduced their stakes in the company. Whittier Trust Co. of Nevada Inc. bought a new position in shares of AAR in the first quarter worth approximately $25,000. Global Retirement Partners LLC bought a new stake in AAR during the second quarter valued at about $39,000. Optiver Holding B.V. lifted its position in shares of AAR by 218.6% in the first quarter. Optiver Holding B.V. now owns 274 shares of the aerospace company’s stock valued at $30,000 after acquiring an additional 188 shares in the last quarter. Nykredit A S bought a new position in shares of AAR in the second quarter worth about $63,000. Finally, McMillan Office Inc. grew its position in shares of AAR by 66.7% during the first quarter. McMillan Office Inc. now owns 500 shares of the aerospace company’s stock worth $55,000 after purchasing an additional 200 shares in the last quarter. 90.74% of the stock is owned by hedge funds and other institutional investors.

More AAR News

Here are the key news stories impacting AAR this week:

• Positive Sentiment: Results exceeded expectations. AAR reported fiscal Q1 2027 revenue of $918 million, up 24% year over year, and adjusted EPS of $1.49 versus the $1.30 consensus estimate. Adjusted EBITDA increased 34%, supported by strong commercial aviation demand. AAR reports first quarter fiscal year 2027 results
• Positive Sentiment: Near-term operating outlook improved. AAR projected second-quarter fiscal 2027 revenue of approximately $906.6 million to $922.5 million, above the roughly $893.5 million analyst consensus. Commercial sales and demand for aircraft parts and maintenance remain supported by airline fleet-aging and aircraft delivery delays. AAR Reports $918 Million First-Quarter Sales
• Positive Sentiment: MRO Holdings could materially expand scale and margins. AAR agreed to acquire a 65% controlling stake in MRO Holdings in a transaction with 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 adjusted-EPS accretive in the first full year, and support a 19%–20% margin target within three to four years. Jefferies also raised its price target to $160. AAR MRO Holdings acquisition announcement
• Neutral Sentiment: Investors are focused on integration and deleveraging. Management said MRO Holdings’ cash generation and planned cost efficiencies should reduce leverage after closing, while analysts’ earnings-call questions centered on the acquisition’s execution, margin potential and financing structure. Analyst questions from AAR earnings call
• Negative Sentiment: Deal funding creates immediate balance-sheet concerns. The acquisition is expected to require about $2.1 billion of new debt, increase net leverage to approximately 3.6 times at closing and include roughly $780 million of stock issued to MRO owners plus a $230 million private equity raise. Investors appear to be discounting the dilution, higher interest burden and integration risk, prompting a Zacks downgrade from “strong buy” to “hold.” AAR stock valuation after planned deal

AAR Company Profile

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.