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Investing.com - Jefferies lowered its price target on Loar Holdings Inc (NYSE:LOAR) to $90.00 from $110.00 on Thursday, while maintaining a Buy rating on the aerospace components manufacturer. Currently trading at $68.23, the stock has declined nearly 8.7% over the past year, with InvestingPro data indicating the stock is currently in oversold territory.
The price target reduction follows Loar’s recent earnings report, which showed the company beat expectations and raised guidance, with 2025 revenue estimates indicating 12% organic growth plus an additional 10 percentage points from acquisitions. The company maintains impressive gross profit margins of 52.2% and has received a "GOOD" overall financial health rating from InvestingPro.
Loar’s acquisition strategy includes recently closed deals for Beadlight, which is expected to contribute $2 million to 2025 estimates and closed on July 28, and Applied Avionics, projected to add $38 million.
Jefferies noted that adjusted EBITDA continues to perform well, with estimates raised to a 38.1% margin from 37.8%, compared to 37.9% achieved in the first half of the year.
The firm highlighted that while Loar’s net leverage stands at 3.3x pro forma for LMB and Beadlight acquisitions, the company maintains ample capacity up to 4x+ leverage, supporting the new $90 price target which represents a premium to peer companies with similar growth profiles. InvestingPro analysis reveals 13 additional key insights about LOAR’s valuation and growth prospects, available exclusively to subscribers through the comprehensive Pro Research Report.
In other recent news, Loar Holdings LLC reported its financial results for the second quarter of 2025, exceeding market expectations. The company achieved earnings per share of $0.23, which was above the anticipated $0.17, representing a 35.29% surprise. Revenue for the quarter came in at $123 million, reflecting a 13% increase compared to the previous year. These figures highlight a strong performance for Loar Holdings in the recent period. The earnings report has caught the attention of analysts and investors alike. The company’s better-than-expected earnings are a focal point for market participants. This development underscores Loar Holdings’ ability to surpass financial projections.
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