Truist analyst Michael Ciarmoli raised the firm’s price target on AAR Corp. to $52 from $48 and keeps a Buy rating on the shares after its Q2 results. The company’s revenue outperformed expectations but free cash flow missed amid investment in distribution and USM asset purchases, though its gross and operating margins were standout items with each hitting multi-year highs, the analyst tells investors in a research note. Ciarmoli adds that while free cash flows will be weak in the second half of FY23 amid ongoing investment, these should directly translate into increases in part sales going forward.
Published first on TheFly
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