In a report released yesterday, Kenneth Herbert from Canaccord Genuity maintained a Buy rating on AAR Corp (NYSE: AIR), with a price target of $48. The company’s shares opened today at $48.16, close to its 52-week high of $49.05.
Herbert observed:
“We are also encouraged by the continued strength of the commercial AM, and we continue to see the positive inflections in EPS, FCF and a new management team as all positives for the stock. We are maintaining our BUY rating and our $48 price target. the company announced that it had successfully completed the transition and phase-in of the Department of State WASS contract. The contract involved adding ~700 full-time employees, as well as 200 subcontractors, and ensuring that five locations are fully operational, Afghanistan, Iraq, Panama, Peru and at Patrick Air Force Base, and other support locations in Florida. The slower than expected ramp of this contract was the primary reason the company lowered its fiscal Q4/18 outlook in May. We continue to believe this contract will add ~$200-$225M in FY19, but it is clear the contribution in H2/19 will be stronger than in H1/19.”
According to TipRanks.com, Herbert is a 5-star analyst with an average return of 12.4% and a 65.2% success rate. Herbert covers the Consumer Goods sector, focusing on stocks such as Transdigm Group Inc, CPI Aerostructures, and Spirit AeroSystems.
AAR Corp has an analyst consensus of Moderate Buy, with a price target consensus of $49.
See today’s analyst top recommended stocks >>
The company has a one-year high of $49.05 and a one-year low of $34.25. Currently, AAR Corp has an average volume of 191.3K.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
AAR Corp. engages in the provision of products and services to commercial aviation and government and defense industries. It operates through two segments: Aviation Services and Expeditionary Services.
