Mixed Financial Signals and External Risks Lead to Hold Rating for StandardAero, Inc.

Analyst Kristine Liwag of Morgan Stanley maintained a Hold rating on StandardAero, Inc. (SARO – Research Report), retaining the price target of $32.00.

Kristine Liwag has given her Hold rating due to a combination of factors influencing StandardAero, Inc.’s financial performance. The company reported earnings per share that exceeded both consensus and Morgan Stanley estimates, driven by strong revenue and improved adjusted EBITDA margins. However, despite these positive aspects, the operating cash flow was significantly below expectations, which raises concerns about the company’s cash management.
Additionally, while StandardAero modestly increased its 2025 revenue and adjusted EBITDA outlook, the impact of tariffs and other external factors remains a potential risk. The company’s interest expenses were lower than Morgan Stanley’s estimates, but tax expenses were higher, adding complexity to the financial outlook. These mixed results and external uncertainties contribute to the Hold rating, suggesting that investors may want to wait for more consistent performance before making significant investment decisions.

According to TipRanks, Liwag is a 5-star analyst with an average return of 12.6% and a 63.05% success rate. Liwag covers the Industrials sector, focusing on stocks such as Boeing, Curtiss-Wright, and Hexcel.