AAR Corp. initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of AAR Corp. (AIR) with a Neutral rating and $121 price target AAR is a diversified aerospace aftermarket company that performs component repairs, distributes parts, and provides other supply chain services, the analyst tells investors in a research note. The firm says that while parts of the business have seen above-market organic growth, and the company’s margins have improved in recent years, its total growth and profitability remain below the aerospace supplier average. In addition, AAR does not generate meaningful amounts of free cash flow, adds Goldman.