William Blair analyst Louie DiPalma has maintained their bullish stance on AIR stock, giving a Buy rating yesterday.
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Louie DiPalma has given his Buy rating due to a combination of factors including AAR’s strategic acquisition of HAECO Americas, which significantly enhances its market position. The acquisition allows AAR to consolidate its status as the largest heavy maintenance provider in North America, increasing its market share from 30% to 45%.
Additionally, AAR has secured multiyear contracts worth over $850 million, which are expected to provide substantial revenue streams. Although the margins from this acquisition are initially expected to align with AAR’s existing heavy maintenance business, management is optimistic about improving EBITDA margins through efficiency initiatives. These factors collectively contribute to a positive outlook for AAR’s financial performance, justifying the Buy rating.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $93.00 price target.