Loar (NYSE:LOAR) Price Target Cut to $80.00 by Analysts at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its price target for Loar from $90 to $80 but kept an "outperform" rating, implying roughly a 30% upside from the current share price.
• Loar beat Q1 estimates with EPS of $0.34 (vs. $0.15 consensus) and revenue of $156.1M (up ~36% YoY) and raised FY‑2026 guidance to $1.26–$1.30 EPS and $645–$655M revenue, citing a ~$700M new‑business pipeline.
• The stock trades at a rich valuation (~82x P/E), creating execution and conversion risk if growth slows, even as insiders and major institutions have been adding to their positions.

Loar (NYSE:LOAR - Get Free Report) had its price target reduced by equities researchers at Royal Bank Of Canada from $90.00 to $80.00 in a report issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target indicates a potential upside of 30.25% from the company's current price.

Other equities analysts also recently issued reports about the stock. Zacks Research upgraded shares of Loar to a "hold" rating in a report on Monday, March 9th. Morgan Stanley set a $91.00 price objective on shares of Loar in a report on Friday. Wall Street Zen downgraded shares of Loar from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Citigroup decreased their price objective on shares of Loar from $83.00 to $71.00 and set a "buy" rating on the stock in a report on Thursday, April 2nd. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Loar in a report on Friday, April 10th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $85.00.

Loar Stock Performance

NYSE LOAR traded up $1.32 on Friday, hitting $61.42. 440,854 shares of the stock were exchanged, compared to its average volume of 992,453. The company has a debt-to-equity ratio of 0.61, a current ratio of 4.70 and a quick ratio of 2.98. The business's fifty day moving average is $63.04 and its 200 day moving average is $67.73. Loar has a 52 week low of $53.15 and a 52 week high of $99.67. The company has a market capitalization of $5.75 billion, a PE ratio of 81.98 and a beta of 0.55.

Loar (NYSE:LOAR - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.19. Loar had a net margin of 14.54% and a return on equity of 7.54%. The firm had revenue of $156.09 million for the quarter, compared to analyst estimates of $149.71 million. During the same period in the prior year, the firm posted $0.16 earnings per share. The company's quarterly revenue was up 36.1% compared to the same quarter last year. Loar has set its FY 2026 guidance at 1.260-1.300 EPS. Research analysts anticipate that Loar will post 0.66 EPS for the current fiscal year.

Insider Activity

In other news, insider Dirkson R. Charles acquired 36,434 shares of Loar stock in a transaction on Thursday, March 12th. The shares were purchased at an average cost of $67.45 per share, for a total transaction of $2,457,473.30. Following the completion of the purchase, the insider directly owned 4,087,005 shares of the company's stock, valued at approximately $275,668,487.25. This represents a 0.90% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Anthony Carpenito bought 4,750 shares of the company's stock in a transaction dated Thursday, March 12th. The stock was bought at an average cost of $64.97 per share, with a total value of $308,607.50. Following the acquisition, the director directly owned 4,750 shares of the company's stock, valued at approximately $308,607.50. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have bought 173,800 shares of company stock valued at $11,327,673. Corporate insiders own 20.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Capital International Investors lifted its holdings in shares of Loar by 61.8% in the fourth quarter. Capital International Investors now owns 7,218,814 shares of the company's stock worth $490,879,000 after acquiring an additional 2,757,297 shares during the last quarter. Wasatch Advisors LP lifted its holdings in shares of Loar by 14.5% in the first quarter. Wasatch Advisors LP now owns 3,509,014 shares of the company's stock worth $201,031,000 after acquiring an additional 444,049 shares during the last quarter. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Loar by 39.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,533,540 shares of the company's stock worth $172,281,000 after acquiring an additional 711,182 shares during the last quarter. Bamco Inc. NY lifted its holdings in shares of Loar by 17.2% in the fourth quarter. Bamco Inc. NY now owns 2,119,505 shares of the company's stock worth $144,126,000 after acquiring an additional 310,406 shares during the last quarter. Finally, State Street Corp lifted its holdings in shares of Loar by 18.1% in the fourth quarter. State Street Corp now owns 1,880,955 shares of the company's stock worth $127,905,000 after acquiring an additional 288,095 shares during the last quarter.

Key Loar News

Here are the key news stories impacting Loar this week:

• Positive Sentiment: Q1 beats: Loar posted Q1 EPS of $0.34 and revenue of $156.1M, well ahead of consensus estimates, with revenue up ~36% year‑over‑year — a clear near‑term growth signal. Zacks: Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Material upward guidance: management raised FY‑2026 adjusted EPS to $1.26–$1.30 (well above prior consensus) and set revenue guidance of $645–$655M, citing a roughly $700M new‑business pipeline — this drives expectations for multiple quarters of earnings upside. MSN: Loar increases 2026 outlook
• Positive Sentiment: Record quarter and messaging: Loar described Q1 as record results and emphasized upward revision to outlook in its press release and investor presentation, which supports a bullish narrative for revenue and margin expansion. AccessNewswire: Record Results & Outlook Revision
• Neutral Sentiment: Full transcripts/slides available: Management’s earnings call and slide deck provide more color on pipeline conversion timing, margins and customer mix — useful for investors deciding whether the guidance trajectory is sustainable. Yahoo Finance: Q1 2026 Earnings Call Transcript
• Negative Sentiment: Valuation and execution risk: LOAR trades at a high P/E (~81x) vs. peers, so much of the upside is priced into future EPS growth — any slowdown in pipeline conversion or margin pressure could trigger a sharp pullback. (Background valuation metrics in investor materials.)
• Negative Sentiment: Volume and scope: intraday volume was below average, so moves may be thin; and revenue guidance is roughly in line with consensus, meaning the market is largely rewarding the upside in EPS and pipeline commentary rather than a big revenue surprise. Yahoo Finance: Q1 Summary

Loar Company Profile

Loar Holdings Inc, through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices.

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