Wedbush Cuts Price Target on AAR Corporation (AIR), Recommends As a Buy and Notes Catalysts
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Price: $19.59 -1.16%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade AIR Now!
Wedbush is maintaining its Outperform rating on shares of AAR Corporation (NYSE: AIR), but is reducing its price target from $30 to $26.
The firm notes that investors are increasingly skeptical over the prospects for the defense business stating that there will be little new business in the airlift segment. While the company focuses on maintaining its existing contracts, management should not forget that the airlift segment has been responsible for the company's upside over the past 18 months.
Wedbush also forecasts that Structures revenues will be flat to down slightly in fiscal 2012. They state that any increase in revenue, over expectations, would act as strong catalyst for the stock. Another near-term catalyst includes the company's upcoming investor day in October.
An analyst at Wedbush comments, "We continue to recommend AIR for the commercial upside. In our view, once we see the floor, or increased confidence, in the defense business, we believe the stock will continue to be attractive for the commercial upside (50% of sales).
For 2012, the firm is increasing its revenue and EPS estimates from $1.896 billion and $2.01 to $1.974 billion and $2.06. For 2013, Wedbush lowered its revenue and EPS estimates from $2.025 billion and $2.45 to $2.006 billion and $2.34.
For more ratings news on AAR Corporation click here and for the rating history of AAR Corporation click here.
Shares of AAR Corporation closed at $20.52 yesterday, with a 52 week range of $17.95-$31.66.
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The firm notes that investors are increasingly skeptical over the prospects for the defense business stating that there will be little new business in the airlift segment. While the company focuses on maintaining its existing contracts, management should not forget that the airlift segment has been responsible for the company's upside over the past 18 months.
Wedbush also forecasts that Structures revenues will be flat to down slightly in fiscal 2012. They state that any increase in revenue, over expectations, would act as strong catalyst for the stock. Another near-term catalyst includes the company's upcoming investor day in October.
An analyst at Wedbush comments, "We continue to recommend AIR for the commercial upside. In our view, once we see the floor, or increased confidence, in the defense business, we believe the stock will continue to be attractive for the commercial upside (50% of sales).
For 2012, the firm is increasing its revenue and EPS estimates from $1.896 billion and $2.01 to $1.974 billion and $2.06. For 2013, Wedbush lowered its revenue and EPS estimates from $2.025 billion and $2.45 to $2.006 billion and $2.34.
For more ratings news on AAR Corporation click here and for the rating history of AAR Corporation click here.
Shares of AAR Corporation closed at $20.52 yesterday, with a 52 week range of $17.95-$31.66.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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