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Investing.com - Truist Securities raised its price target on AAR Corporation (NYSE:AIR) to $90.00 from $81.00 on Wednesday, while maintaining a Buy rating on the aviation services provider. The stock, currently trading at $77.91, has shown impressive momentum with a 28% year-to-date return. According to InvestingPro analysis, AAR appears slightly undervalued based on its Fair Value metrics.
The price target increase follows AAR’s fiscal first quarter 2026 results, which saw revenue and adjusted earnings per share beat Street expectations, though free cash flow missed analyst estimates. With a market capitalization of $2.69 billion and a strong current ratio of 2.91, AAR demonstrates solid financial health. InvestingPro subscribers can access 8 additional key insights about AAR’s financial position.
AAR reported organic revenue growth of 16.8% in the quarter, marking an acceleration from the fourth quarter of fiscal 2025 and reaching a multi-quarter high. The company’s parts distribution business was highlighted as driving top-line strength, benefiting from both government and commercial demand.
Management raised its fiscal year 2026 revenue outlook modestly and provided second-quarter guidance that exceeded Street expectations. Commercial aftermarket demand remains healthy, according to Truist’s analysis.
USM (used serviceable material) and whole asset sales contributed to the first quarter performance, while margins increased year-over-year despite sequential declines attributed to seasonality.
In other recent news, AAR Corp reported its first-quarter fiscal 2026 earnings, surpassing market expectations. The company achieved an adjusted earnings per share (EPS) of $1.08, exceeding the forecasted $1.00. AAR Corp’s revenue reached $740 million, which was higher than the anticipated $691.5 million. These results indicate a strong performance for the company during this period. The earnings announcement reflects positively on AAR Corp’s financial health, as seen by investor reactions. Additionally, analysts may take note of these results in their future assessments. These developments are among the latest updates concerning AAR Corp.
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