Zacks Research Downgrades AAR (NYSE:AIR) to Hold

AAR (NYSE:AIR) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday, Zacks reports.

A number of other analysts have also recently weighed in on AIR. Weiss Ratings cut AAR from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday. Jefferies Financial Group raised their price objective on shares of AAR from $155.00 to $160.00 and gave the stock a “buy” rating in a report on Tuesday. Truist Financial lifted their price target on shares of AAR from $128.00 to $145.00 and gave the company a “buy” rating in a report on Monday, July 27th. Wall Street Zen lowered shares of AAR from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $145.00 price objective on shares of AAR in a report on Monday. Four analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $140.60.

AAR Stock Down 6.6%

AIR stock opened at $107.45 on Monday. AAR has a fifty-two week low of $76.10 and a fifty-two week high of $154.00. The stock has a market cap of $4.29 billion, a PE ratio of 22.02 and a beta of 1.11. The firm’s 50-day simple moving average is $131.46 and its 200 day simple moving average is $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 (NYSE:AIR) last issued its earnings results on Monday, September 28th. The aerospace company reported $1.49 earnings per share for the quarter, topping analysts’ consensus estimates of $1.30 by $0.19. AAR had a net margin of 5.55% and a return on equity of 13.20%. The firm had revenue of $918.00 million during the quarter, compared to analysts’ expectations of $878.81 million. As a group, sell-side analysts predict that AAR will post 5.92 EPS for the current year.

Institutional Trading of AAR

A number of institutional investors have recently modified their holdings of AIR. Whittier Trust Co. of Nevada Inc. acquired a new position in AAR in the first quarter valued at $25,000. Global Retirement Partners LLC bought a new position in AAR during the 2nd quarter valued at $39,000. Optiver Holding B.V. grew its holdings 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 purchased a new position in shares of AAR in the 2nd quarter worth about $63,000. Finally, McMillan Office Inc. boosted its position in 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 during the period. 90.74% of the stock is currently owned by institutional investors.

Key AAR News

Here are the key news stories impacting AAR this week:

• Positive Sentiment: AAR reported fiscal Q1 2027 revenue of $918 million, up 24% year over year, while adjusted diluted EPS of $1.49 exceeded analyst expectations of $1.30. 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 growth outlook, issuing second-quarter revenue guidance of approximately $906.6 million to $922.5 million, above the roughly $893.5 million consensus estimate. AAR fiscal 2027 guidance
• Positive Sentiment: Jefferies raised its price target for AAR to $160, while RBC maintained an Outperform rating with a $145 target, reflecting continued analyst confidence in the company’s operating momentum. Jefferies raises AAR price target
• Neutral Sentiment: AAR agreed to acquire a 65% controlling stake in MRO Holdings for an implied enterprise value of about $4 billion, adding more than $1 billion in revenue and potentially increasing adjusted EBITDA margins from roughly 12% to 16% before synergies. Management expects the deal to be adjusted-EPS accretive in the first full fiscal year after closing and is targeting 19%–20% adjusted EBITDA margins within three to four years. AAR MRO Holdings acquisition
• Negative Sentiment: Investors appear concerned that the MRO transaction will require substantial new debt and equity, including about $780 million of stock issued to current MRO owners and a roughly $230 million PIPE. Net leverage is expected to rise to approximately 3.6 times at closing, creating dilution, integration and balance-sheet risk despite the deal’s strategic benefits. Why AAR stock is down

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.