Bob Karr
2 min read
In This Article:
On May 23, Morgan Stanley resumed its coverage on Loar Holdings Inc. (NYSE:LOAR)’s stock and provided an “Overweight” rating with a price objective of $100.
The analysis by the firm highlighted the company’s effective growth strategy, which was reflected via organic and inorganic means. Organically, the company’s net sales went up by 11.1% YoY or $10.2 million to $102.0 million in Q1 2025.
A military cargo plane landing at its destination, signifying the strength of its defense arm.
Its adjusted EBITDA margin for the quarter rose to 37.6% as compared to 36.0% in the prior year's quarter. The figures demonstrate Loar Holdings Inc. (NYSE:LOAR)’s adept management and strategic execution, targeted at surpassing the market through numerous initiatives.
Such initiatives consist of new product development, stronger customer relationships, cross-selling opportunities, and using the proprietary portfolio to drive margins. Loar Holdings Inc. (NYSE:LOAR)’s management has a favourable outlook on M&As, thanks to a strong pipeline of opportunities.
This is aided by the company’s record bookings across the end markets, reflecting healthy demand for its offerings. Overall, the resumption of coverage and a price objective hint at the firm’s confidence in Loar Holdings Inc. (NYSE:LOAR)’s ongoing performance and prospects.
Loar Holdings Inc. (NYSE:LOAR) is engaged in designing, manufacturing, and marketing aerospace and defense components for aircraft, aerospace and defense systems.
While we acknowledge the potential of LOAR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LOAR and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
