AAR (NYSE:AIR) Downgraded by Zacks Research to Hold

AAR (NYSE:AIR) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Monday, Zacks reports.

Several other equities analysts have also recently issued reports on the company. KeyCorp reaffirmed a “sector weight” rating on shares of AAR in a report on Wednesday, July 22nd. Truist Financial upped their target price on AAR from $128.00 to $145.00 and gave the company a “buy” rating in a report on Monday, July 27th. Jefferies Financial Group raised their price target on AAR from $155.00 to $160.00 and gave the company a “buy” rating in a research report on Tuesday. Wall Street Zen downgraded AAR from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $145.00 price objective on shares of AAR in a research report on Monday. Four analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $140.60.

AAR Stock Down 6.6%

Shares of NYSE AIR opened at $107.45 on Monday. The stock has a market capitalization of $4.29 billion, a price-to-earnings ratio of 22.02 and a beta of 1.11. AAR has a 52 week low of $76.10 and a 52 week high of $154.00. The firm has a 50-day moving average price of $131.46 and a 200 day moving average price of $123.84. The company has a quick ratio of 1.24, a current ratio of 2.84 and a debt-to-equity ratio of 0.52.

AAR (NYSE:AIR) last issued its earnings results on Monday, September 28th. The aerospace company reported $1.49 earnings per share for the quarter, topping the consensus estimate of $1.30 by $0.19. AAR had a net margin of 5.55% and a return on equity of 13.20%. The company had revenue of $918.00 million for the quarter, compared to analyst estimates of $878.81 million. Equities research analysts anticipate that AAR will post 5.92 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in AIR. PNC Financial Services Group Inc. lifted its stake in shares of AAR by 1.7% in the first quarter. PNC Financial Services Group Inc. now owns 8,073 shares of the aerospace company’s stock worth $884,000 after acquiring an additional 132 shares in the last quarter. Sheets Smith Wealth Management grew its stake in AAR by 2.0% during the 2nd quarter. Sheets Smith Wealth Management now owns 7,669 shares of the aerospace company’s stock valued at $1,096,000 after purchasing an additional 148 shares in the last quarter. Assetmark Inc. increased its holdings in AAR by 10.7% during the 1st quarter. Assetmark Inc. now owns 1,606 shares of the aerospace company’s stock worth $176,000 after purchasing an additional 155 shares during the last quarter. Nilsine Partners LLC increased its holdings in AAR by 4.8% during the 2nd quarter. Nilsine Partners LLC now owns 3,582 shares of the aerospace company’s stock worth $512,000 after purchasing an additional 163 shares during the last quarter. Finally, Optiver Holding B.V. raised its position in shares of AAR by 218.6% in the 1st quarter. Optiver Holding B.V. now owns 274 shares of the aerospace company’s stock valued at $30,000 after purchasing an additional 188 shares in the last quarter. Institutional investors and hedge funds own 90.74% of the company’s stock.

Key Stories Impacting AAR

Here are the key news stories impacting AAR this week:

• Positive Sentiment: AAR reported fiscal Q1 2027 revenue of $918 million, up 24% year over year, while adjusted diluted EPS of $1.49 exceeded analyst expectations of $1.30. Commercial sales rose 28%, government sales increased 14%, and operating cash flow improved to $55.8 million. AAR reports first quarter fiscal year 2027 results
• Positive Sentiment: The company raised its growth outlook, issuing second-quarter revenue guidance of approximately $906.6 million to $922.5 million, above the roughly $893.5 million consensus estimate. AAR fiscal 2027 guidance
• Positive Sentiment: Jefferies raised its price target for AAR to $160, while RBC maintained an Outperform rating with a $145 target, reflecting continued analyst confidence in the company’s operating momentum. Jefferies raises AAR price target
• Neutral Sentiment: AAR agreed to acquire a 65% controlling stake in MRO Holdings for an implied enterprise value of about $4 billion, adding more than $1 billion in revenue and potentially increasing adjusted EBITDA margins from roughly 12% to 16% before synergies. Management expects the deal to be adjusted-EPS accretive in the first full fiscal year after closing and is targeting 19%–20% adjusted EBITDA margins within three to four years. AAR MRO Holdings acquisition
• Negative Sentiment: Investors appear concerned that the MRO transaction will require substantial new debt and equity, including about $780 million of stock issued to current MRO owners and a roughly $230 million PIPE. Net leverage is expected to rise to approximately 3.6 times at closing, creating dilution, integration and balance-sheet risk despite the deal’s strategic benefits. Why AAR stock is down

About AAR

AAR Corp. is a global provider of aviation services supporting commercial aviation, government and defense customers. The company supplies aircraft parts and equipment, manages inventory and logistics, and provides maintenance, repair and overhaul services for aircraft and components.

AAR’s offerings include parts distribution, supply-chain management, aircraft maintenance, airframe and component repair, and mobility solutions for government and defense operators. Its services are designed to help airlines, aircraft operators and government agencies maintain fleet readiness and manage aviation assets.

Founded in 1955, AAR is headquartered in Wood Dale, Illinois, and serves customers across North America, Europe, Asia and other international markets.