Update shared on 15 Dec 2025
Analysts have modestly raised their price target on AAR to $92.25 per share from $92.00, citing slightly higher assumed discount rates and a marginally richer future earnings multiple, while maintaining their long term views on growth and profitability.
What's in the News
- AAR and Air France Industries KLM Engineering & Maintenance received regulatory approval and completed formation of xCelle Asia, a Thailand based joint venture focused on nacelle MRO services for new generation aircraft across the APAC region (Strategic Alliances).
- AAR extended its multi year exclusive global distribution agreement with Collins Aerospace for Goodrich de icing and specialty systems, reinforcing its position in general aviation, commercial, and defense aftermarket distribution (Client Announcements).
- AAR renewed a multi year exclusive global distribution agreement with Arkwin Industries, covering a broad range of actuation, valve, and reservoir products for the commercial aviation aftermarket (Client Announcements).
- AAR was named an authorized service center for Eaton's commercial aerospace customers in Europe, the Middle East, and Africa, providing local repair and overhaul of hydraulic components from its Amsterdam facility (Client Announcements).
- AAR completed and filed follow on equity offerings totaling approximately $249 million for 3,000,000 shares of common stock, and a 61 day lock up agreement covers over 36 million shares held by executives and directors through November 30, 2025 (Follow on Equity Offerings, End of Lock Up Period).
Valuation Changes
- Fair Value Estimate: Unchanged at $92.25 per share. This indicates no revision to the intrinsic value despite other minor model adjustments.
- Discount Rate: Risen slightly to approximately 8.24 percent from 8.20 percent, reflecting a modest increase in the assumed cost of capital.
- Revenue Growth: Effectively unchanged at about 9.28 percent, with only immaterial rounding differences versus the prior assumption.
- Net Profit Margin: Essentially flat at roughly 8.16 percent, indicating no meaningful change in long term profitability expectations.
- Future P/E Multiple: Risen slightly to about 13.83x from 13.82x, implying a marginally richer valuation applied to projected earnings.
Have other thoughts on AAR?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.