KeyBanc raised the firm's price target on AAR Corp. to $132 from $120 and keeps an Overweight rating on the shares. The firm's proprietary Q1 Plane Chain survey of aerospace suppliers shows a meaningful step-up in OEM order activity, as the OEM production recovery gains momentum. Supplier inventories show signs of restocking in support of the ongoing ramps, while A&D aftermarket remains tight, supporting prolonged fleet life. The war in Iran supports defense demand; though, elevated fuel costs are a key watch point, pressuring air travel and driving airlines to lower-cost alternative, KeyBanc adds.
