Added to YB: 2026-10-07
Pitch date: 2026-10-02
AIR [neutral]
AAR Corp.
-4.44%
current return
Author Info
Monte Independent Investment Research is a small- and mid-cap industrials research firm that specializes in uncovering value in small- and mid-cap industrials through a hybrid research approach that blends top-down market analysis with bottom-up company fundamentals. Sign up for the newsletter.
Company Info
AAR Corp. provides products and services to commercial aviation, government, and defense markets in North America, Europe, Africa, Asia, and internationally.
Market Cap
$4.1B
Pitch Price
$102.53
Price Target
171.00 (+75%)
Dividend
N/A
EV/EBITDA
11.38
P/E
20.97
EV/Sales
1.41
Sector
Aerospace and Defense
Category
special_situation
Research & Analysis | AAR Corp. (NYSE: AIR): MRO Holdings Reshapes the Margin Profile
AIR (hold): AAR’s planned purchase of a 65% controlling interest in MRO Holdings would add underserved Americas widebody maintenance and could lift adjusted EBITDA margins from 12.13% in FY26 to management’s 19-20% by year four. However, $2.1B of new debt would raise net leverage to 3.6x, while shares trade at 15.94x EV/adjusted EBITDA including that planned debt versus a 12.51x historical midpoint. The $171 target at 11.83x FY29 EV/adjusted EBITDA supports waiting for a better entry.
Read full article (6 min)