Analysts have raised their price target for AAR from $87 to $91. They cite stronger projected revenue growth and significantly improved profit margin forecasts as key drivers for the upward revision.
What's in the News
- AAR Corp. completed a follow-on equity offering, raising $249 million through the sale of 3,000,000 common stock at $83 per share (company filing).
- The company was awarded a new contract to provide mobility solutions to the Defense Logistics Agency Troop Support, valued at up to $85 million (client announcement).
- AAR signed a multi-year defense distribution agreement with AmSafe Bridport and will become the exclusive global distributor for the KC-46 and C-40 platforms, including key U.S. and Japanese defense markets (client announcement).
- Executives and directors entered into a lock-up agreement that restricts the sale of 36,112,491 common stock from September 30, 2025 to November 30, 2025 (company filing).
- The company signaled active pursuit of acquisitions and continued organic sales growth. It is aiming for a net leverage target of 2 to 2.5x in fiscal year 2026 (company earnings call).
Valuation Changes
- The consensus analyst price target has increased from $87 to $91.
- The discount rate has decreased slightly from 8.55% to 8.53%.
- The revenue growth forecast has risen from 6.03% to 7.30%.
- The net profit margin forecast has more than doubled, rising from 6.08% to 12.66%.
- The future P/E multiple is now projected at 9.37x, which is significantly lower than the previous estimate of 19.33x.
Disclaimer
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