AAR’s (AIR) Outperform Rating Reaffirmed at Royal Bank Of Canada

Royal Bank Of Canada restated their outperform rating on shares of AAR (NYSE:AIR) in a research note issued to investors on Monday, MarketBeat reports. Royal Bank Of Canada currently has a $145.00 price target on the aerospace company’s stock.

Several other research firms have also weighed in on AIR. Jefferies Financial Group boosted their target price on shares of AAR from $150.00 to $155.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Wall Street Zen lowered shares of AAR from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. 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. Weiss Ratings downgraded shares of AAR from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday. Finally, Zacks Research upgraded shares of AAR from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, AAR presently has an average rating of “Moderate Buy” and a consensus target price of $139.60.

AAR Price Performance

Shares of NYSE AIR opened at $115.58 on Monday. AAR has a twelve month low of $76.10 and a twelve 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. The company has a market capitalization of $4.61 billion, a price-to-earnings ratio of 23.93 and a beta of 1.11. The business has a 50 day simple moving average of $132.14 and a 200-day simple moving average of $123.85.

AAR (NYSE:AIR) last posted its quarterly earnings results on Monday, September 28th. The aerospace company reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.20. AAR had a return on equity of 12.67% and a net margin of 5.67%.The business had revenue of $918.00 million for the quarter, compared to analyst estimates of $881.11 million. As a group, equities research analysts expect that AAR will post 5.92 earnings per share for the current year.

Hedge Funds Weigh In On AAR

Several hedge funds and other institutional investors have recently modified their holdings of the company. Oppenheimer Asset Management Inc. acquired a new position in AAR during the 2nd quarter valued at about $3,630,000. Deutsche Bank AG acquired a new stake in shares of AAR in the second quarter valued at approximately $8,640,000. First Trust Advisors LP increased its stake in shares of AAR by 20.4% in the first quarter. First Trust Advisors LP now owns 90,749 shares of the aerospace company’s stock valued at $9,933,000 after purchasing an additional 15,345 shares during the period. EFG International AG bought a new stake in shares of AAR during the second quarter valued at approximately $4,111,000. Finally, Jupiter Topco LLC bought a new stake in shares of AAR during the second quarter valued at approximately $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: Acquisition expands scale and profitability: AAR agreed to acquire a 65% controlling stake in MRO Holdings, a Bain-backed aircraft-maintenance company, for $1.8 billion. The deal adds more than $1 billion in revenue and is expected to increase AAR’s consolidated adjusted EBITDA margin from approximately 12% to 16% before synergies. AAR acquisition announcement
• Positive Sentiment: Improved earnings outlook: AAR expects the MRO Holdings acquisition to be accretive to adjusted EPS in the first full fiscal year after closing. Management also raised its longer-term adjusted EBITDA margin target to approximately 19%–20% within three to four years, supporting the company’s aftermarket growth strategy. AAR MRO Holdings transaction report
• Positive Sentiment: Quarterly results exceeded expectations: AAR reported fiscal first-quarter EPS of $1.49, topping the $1.30 analyst consensus, while revenue of $918 million exceeded estimates of $882.4 million. The results indicate solid demand across its aerospace aftermarket operations. AAR fiscal first-quarter results
• Positive Sentiment: Analyst support remains favorable: RBC reaffirmed its “Outperform” rating and maintained a $145 price target, implying substantial upside from the reference price. RBC rating on AAR
• Negative Sentiment: Large transaction risk: The acquisition’s $1.8 billion price tag is significant relative to AAR’s roughly $4.6 billion market capitalization. Investors may be concerned about funding, integration, and the company’s ability to realize projected synergies, even though the strategic rationale is favorable.

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.