StandardAero initiated with a Buy at Truist

Truist initiated coverage of StandardAero (SARO) with a Buy rating and $35 price target which which represents 31% upside from current levels. The firm believes the company is “uniquely” positioned as a pure-play aerospace aftermarket company with exposure to the “most lucrative, fastest growing, and most visible portion” of the sector – the engine. StandardAero has the potential to organically outgrow peers while driving modest EBITDA margin expansion as volumes and pricing act as tailwinds, the analyst tells investors in a research note.