AAR Corp. (NYSE:AIR) is among the 7 Best Mid-Cap Defense Stocks to Invest In. On April 9, KeyBanc raised its price target on the stock to $132 from $120, while reiterating an overweight rating.
According to TipRanks, the company noted a significant increase in aerospace OEM orders, with production levels now stabilizing and supplier inventories suggesting continued restocking to support ramps.
KeyBanc analyst Michael Leshock described the aerospace and defense aftermarket as tight, indicating longer fleet life. He also noted that the conflict in the Middle East bodes well for defense demand, but warned that the resulting oil crisis could put pressure on air travel.
As of close of trading on April 10, AAR Corp. (NYSE:AIR) is a Strong Buy based on recommendations from six analysts. The stock has a one-year average price target of $131.20, representing a gain of 9%.
In other news, late last month the company said it had secured two pallet contracts from the US Air Force worth a combined $450 million. This includes a $160 million deal to provide repair services for the 463L Legacy Cargo Pallet and a $290 million contract to manufacture 463 legacy air cargo pallets.
AAR Corp. (NYSE:AIR) is an aerospace and defense aftermarket solutions company that supports commercial and government customers through its extensive network of operations spanning 20 countries. It operates through four segments: parts supply, repair and engineering, integrated solutions and expeditionary services.
While we recognize AIR’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: The 12 Best Aerospace Stocks to Buy Right Now and Donald Trump’s Stock Portfolio: 8 Stocks Owned by the President.
Disclosure: None. Follow Insider Monkey on Google News.