Loar Holdings initiated with an Equal Weight at Morgan Stanley

Morgan Stanley initiated coverage of Loar Holdings with an Equal Weight rating and $55 price target. The company has an attractive business model, growth runway, strong margin profile, and expected strong free cash flow generation, but this is balanced with the magnitude of the near-term price movement in the stock, the analyst tells investors in a research note. The firm’s bull case valuation is $80 per share and its bear case valuation is $24.