Stock Pulse
AAR Corp. (AIR) has secured multiple new contracts, including nacelle MRO services for Cebu Pacific Air [2], [3] and expanded distribution agreements with the Defense Logistics Agency for Unison parts [6] and Chromalloy for PW4000 engine blades [7]. These agreements strengthen AAR's position in the growing Asia-Pacific MRO market and enhance its role as a key supplier in both commercial and defense aviation. A DCF analysis suggests AIR is undervalued by 49%, projecting a fair value of $131 [1]. Strong projected growth for 2025, positive analyst outlook (Zacks Rank #1), and AAR's Amsterdam facility being ranked #1 "Best Source of Repair" by NSPA/IAMCO further support a positive outlook [5], [8]. However, increased implied volatility in options suggests potential for significant price swings [4], and debt coverage and revenue growth are noted as potential risks [1]. A director also acquired a modest amount of phantom stock [9].