StandardAero stock initiated with Positive rating at Susquehanna

Investing.com - Susquehanna initiated coverage on StandardAero Inc (NYSE:SARO) with a Positive rating and a price target of $34.00 on Wednesday. The target represents a potential 24% upside from the current price of $27.31, though InvestingPro analysis suggests the stock is currently trading near its Fair Value.

The research firm views StandardAero as a "pure-play aeroengine aftermarket supplier" well-positioned to benefit from expected robust growth in the MRO (maintenance, repair, and overhaul) submarkets within the Aerospace & Defense industry.

Susquehanna highlighted StandardAero’s established customer relationships with major engine OEMs including GE, Honeywell, and Pratt & Whitney, as well as with aircraft operators such as Southwest, Delta, and FedEx.

The firm noted that StandardAero holds a "#1 or #2 market share position on several major engine platforms" across various stages of the engine lifecycle, positioning it to capitalize on expected growth in the engine maintenance submarket.

Susquehanna projects double-digit annual revenue growth for StandardAero through at least 2027, with free cash flow expected to more than double from 2025 to 2027. This outlook aligns with InvestingPro data showing analysts expect 14% revenue growth and improved profitability in the coming year.

In other recent news, StandardAero Inc. reported its earnings for the second quarter of 2025, revealing a revenue of $1.53 billion, which exceeded expectations and marked a 13.5% increase year-over-year. Despite this revenue success, the company’s earnings per share came in slightly below forecasts at $0.20, compared to the anticipated $0.21. Following these results, Jefferies raised its price target for StandardAero to $40.00, up from $39.00, while maintaining a Buy rating, reflecting confidence in the company’s growth trajectory. Barclays also initiated coverage of StandardAero with an Overweight rating, citing strong positioning in GE’s narrowbody aftermarket and expected double-digit growth in the coming years. These developments indicate a positive outlook from analysts, despite the mixed earnings performance.

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