Wedbush Downgrades AAR Corporation (AIR) to Neutral; L-T Weakness in Gov't Sector

Wedbush downgraded AAR Corporation (NYSE: AIR) from Outperform to Neutral, price target lowered from $24 to $21.

Analyst, Kenneth Herbert, said, "Our positive thesis was based on better-than-expected commercial results increasingly driving sentiment, even with longer-term weakness in the government sector, specifically the airlift business. However, the most recent quarter showed that weakness in the airlift business is likely to continue into fiscal 2013, further increasing concerns about the longer-term opportunity in the airlift segment and the broader defense segment sales as troop levels in Afghanistan are expected to decline substantially and OCO funding is increasingly pressured." (Wedbush lowers FY13 EPS estimates from $2.24 to $2.17)

For an analyst ratings summary and ratings history on AAR Corporation click here. For more ratings news on AAR Corporation click here.

Shares of AAR Corporation closed at $17.91 yesterday.

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