AAR Corp. Ready for Take-Off

AAR Corporation (AIR - Analyst Report) provides goods & services to commercial airlines and the Defense establishment. On the commercial side, demand for AIR's product offerings moves with the size of the fleet -- which is declining overall -- while requirements for its services may grow as the airlines outsource more maintenance, repair and overhaul work.

For defense, AAR Corp. designs and manufactures mobility products, aircraft internal cargo loading/unloading systems and composite structures, the combination of which has become a larger part of the Company's revenues. While AIR's stock price has been battered along with the rest of the market, it appears that the Company may be able to report relatively stable earnings during the next few quarters.

That outlook, coupled with our six-month target price analysis, has caused the Zacks opinion to be upgraded to Buy. Our target price is $23.40 per share.

Read the full analyst report on AAR