Loar Holdings initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of Loar Holdings with an Outperform rating and $60 price target. Loar represents a high-quality small-cap aerospace stock with 70% of its profits from the aftermarket, the analyst tells investors in a research note. The firm says the company is positioned to benefit from continued strength in the commercial aftermarket, steady margin expansion, a positive inflection in free cash flow, and upside from potential incremental acquisition activity.