The analyst notes AAR's Q3 results showed steady improvement, with aviation sales up just under 3% Q/Q.
Herbert specifies that AAR faced some softness early in the quarter in its parts business due to the impact of Omicron.
Truist Securities analyst Michael Ciarmoli raised his price target on AAR to $58 (an upside of 16%) from $53 and maintained a Buy rating on the shares.
Recently, AAR reported its third-quarter results, with sales growth of 10% year-over-year to 2 million, beating the consensus of $432.5 million.
Adjusted EPS was $0.63, up 70% Y/Y, beating the consensus of $0.58.
The gross profit margin was 17.8%, down from 21% in 3Q21. The Operating margins were 6.7% versus 9.7% in 3Q21.
Adjusted EBITDA increased by 24% Y/Y to $39.3 million, and margin expanded to 8.7%.
Third-quarter cash flow from operating activities from continuing operations totaled $16 million.
Price Action: AIR shares are trading higher by 6.82% at $50.09 on the last check Wednesday.
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