AAR (AIR) remains "well positioned" to benefit from higher aftermarket parts demand, but more material margin expansion and free cash flow improvement will be important for a further step-change in its multiple, RBC Capital Markets said in a Thursday note.
Noting AAR's fiscal Q4 results, RBC said the 17% growth in the parts supply business was the highlight, with AAR seeing over 20% growth in its distribution business.
AAR reported fiscal 2025 free cash flow of about $1 million, and RBC said that while it would like to see FCF improve, it "appreciates" the continued working capital investments.
The firm maintained its outperform rating and raised its price target to $85 from $75.
Price: 83.99, Change: +9.11, Percent Change: +12.17
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。