AAR’s (AIR) “Outperform” Rating Reiterated at Royal Bank Of Canada

by · The Markets Daily

Royal Bank Of Canada reiterated their outperform rating on shares of AAR (NYSE:AIR – Free Report) in a report released on Monday morning, MarketBeat.com reports. They currently have a $145.00 target price on the aerospace company’s stock.

A number of other brokerages have also commented on AIR. Guggenheim assumed coverage on shares of AAR in a report on Monday, September 14th. They set a “neutral” rating on the stock. Zacks Research raised shares of AAR from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 10th. Weiss Ratings lowered shares of AAR from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, September 25th. KeyCorp reiterated a “sector weight” rating on shares of AAR in a research report on Wednesday, July 22nd. Finally, Jefferies Financial Group increased their price target 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. Four analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $140.60.

View Our Latest Report on AIR

AAR Price Performance

Shares of AIR stock opened at $101.72 on Monday. The stock’s fifty day moving average is $130.96 and its 200-day moving average is $123.83. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.24 and a current ratio of 2.83. The stock has a market capitalization of $4.06 billion, a PE ratio of 20.84 and a beta of 1.11. AAR has a 52 week low of $76.10 and a 52 week high of $154.00.

AAR (NYSE:AIR – Get Free Report) last announced its earnings results on Monday, September 28th. The aerospace company reported $1.49 earnings per share for the quarter, beating analysts’ consensus estimates of $1.30 by $0.19. AAR had a return on equity of 12.99% and a net margin of 5.55%.The company had revenue of $918.00 million during the quarter, compared to analyst estimates of $878.81 million. During the same period last year, the company posted $1.08 earnings per share. The firm’s quarterly revenue was up 24.1% compared to the same quarter last year. Equities research analysts expect that AAR will post 5.92 EPS for the current fiscal year.

Institutional Trading of AAR

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in AAR during the 2nd quarter valued at about $925,068,000. Geode Capital Management LLC grew its position in shares of 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 shares of AAR by 4.9% during the first 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 last quarter. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of AAR during the second quarter worth approximately $84,251,000. Finally, Emerald Advisers LLC raised its stake in shares of 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 buying an additional 26,223 shares during the last quarter. 90.74% of the stock is owned by institutional investors.

Key Stories Impacting AAR

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

(Get Free Report)

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.

Further Reading