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Loar Holdings Inc.: Undervalued Growth Potential and Strong Financial Foundation Justify Buy Rating

Loar Holdings Inc.: Undervalued Growth Potential and Strong Financial Foundation Justify Buy Rating

Analyst Kristine Liwag of Morgan Stanley maintained a Buy rating on Loar Holdings Inc., reducing the price target to $97.00.

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Kristine Liwag’s rating is based on several compelling factors. One of the primary reasons is Loar Holdings Inc.’s robust growth from new product development, which is expected to contribute significantly to sales over the next five years. The company has demonstrated a strong pipeline of innovations, such as PMA brake certifications and the exclusive cockpit door barrier for Airbus narrowbody aircraft, indicating a promising trajectory for future growth.
Additionally, Loar Holdings Inc. has shown impressive management execution, reflected in its organic growth and margin expansion. Despite a conservative initial outlook for 2026, the company’s performance and growth potential are perceived as undervalued by the market. The firm’s ability to generate strong free cash flow and maintain a low net debt to EBITDA ratio further supports the Buy rating, suggesting a solid financial foundation and potential for upward stock movement.

In another report released on November 6, RBC Capital also maintained a Buy rating on the stock with a $92.00 price target.

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