As previously reported, KeyBanc initiated coverage of AAR Corp. (AIR) with an Overweight rating and $83 price target The firm is citing a favorable macro backdrop for the company given its exposure to the multiyear up-cycle in Aerospace & Defense, particularly within aftermarket. AAR is a net beneficiary of ongoing OEM challenges as older planes re-enter the global fleet and drive strong demand for aftermarket parts, and while subdued OEM production could constrain USM – Used Serviceable Materials – part availability due to delayed fleet retirements, the benefits more than offset this dynamic, the analyst tells investors in a research note. KeyBanc adds that AAR sees further efficiency improvements within its Repair & Engineering segment at its hangars, which are currently at/near full capacity.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.