In a report released yesterday, Kristine Liwag from Morgan Stanley maintained a Hold rating on Loar Holdings Inc. (LOAR – Research Report), with a price target of $91.00.
Kristine Liwag’s rating is based on a combination of factors that highlight both strengths and challenges for Loar Holdings Inc. The company’s recent financial performance exceeded expectations, with adjusted earnings per share surpassing consensus estimates by 4% and Morgan Stanley estimates by 78%. This was largely driven by robust demand in the Defense/Military sector and successful productivity and pricing strategies.
Despite these positive results, there are areas of concern that justify a Hold rating. While revenue and net income were above estimates, the adjusted EBITDA margin was slightly below consensus. Additionally, tax expenses were higher than expected, which may impact future profitability. These mixed signals suggest that while Loar Holdings Inc. is performing well, there are uncertainties that warrant a cautious approach.
Liwag covers the Industrials sector, focusing on stocks such as Boeing, Curtiss-Wright, and FTAI Aviation. According to TipRanks, Liwag has an average return of 11.6% and a 61.76% success rate on recommended stocks.