Bank of America Securities analyst Ronald Epstein maintained a Hold rating on StandardAero, Inc. (SARO – Research Report) yesterday and set a price target of $32.00.
Ronald Epstein has given his Hold rating due to a combination of factors influencing StandardAero, Inc.’s performance and outlook. The company’s recent quarterly earnings showed a slight miss in adjusted EPS compared to Bank of America’s expectations, primarily due to one-time costs related to transactions and investments. Despite this, StandardAero demonstrated solid revenue growth in its Engine Services and Component Repair Services, although the EBITDA margins were slightly below expectations.
Looking ahead to 2025, StandardAero has provided a revenue outlook that aligns closely with market expectations, but the anticipated EBITDA margins are somewhat conservative compared to analyst estimates. The company’s growth prospects in the commercial aerospace, military, and business aviation markets are promising, yet the nature of its maintenance, repair, and overhaul business may limit potential margin expansion. These factors contribute to the decision to maintain a Hold rating, reflecting a balanced view of the company’s growth opportunities and margin constraints.
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