Loar (NYSE:LOAR) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised Loar’s price target to $85 from $80 and maintained an “outperform” rating, implying nearly 20% upside. The consensus rating is “Moderate Buy,” with an average target of $85.40.
• Loar reported a strong quarter, with EPS of $0.38 beating the $0.31 estimate and revenue rising 39.4% year over year to $171.6 million. Management raised its 2026 guidance to $665 million–$675 million in revenue and $1.32–$1.36 in EPS.
• Despite solid fundamentals, the stock trades at a high price-to-earnings ratio near 100 and recently fell to $70.86. Zacks downgraded the shares from “Strong Buy” to “Hold,” while technical analysts are watching for support after the pullback.

Loar (NYSE:LOAR - Get Free Report) had its price target upped by research analysts at Royal Bank Of Canada from $80.00 to $85.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective suggests a potential upside of 19.95% from the stock's current price.

Several other brokerages have also commented on LOAR. Morgan Stanley restated an "equal weight" rating and set a $82.00 price target (down from $91.00) on shares of Loar in a research note on Wednesday, July 15th. Citigroup upped their target price on shares of Loar from $71.00 to $87.00 and gave the company a "buy" rating in a research note on Thursday, June 25th. Jefferies Financial Group set a $75.00 price target on Loar in a report on Sunday, May 10th. Zacks Research downgraded Loar from a "strong-buy" rating to a "hold" rating in a research report on Wednesday. Finally, Weiss Ratings raised Loar from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, July 10th. Three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Loar has a consensus rating of "Moderate Buy" and an average price target of $85.40.

Loar Price Performance

NYSE:LOAR traded down $1.68 during midday trading on Friday, hitting $70.86. 252,732 shares of the stock were exchanged, compared to its average volume of 891,776. The company has a market capitalization of $6.63 billion, a price-to-earnings ratio of 99.95 and a beta of 0.56. The company has a current ratio of 4.56, a quick ratio of 2.89 and a debt-to-equity ratio of 0.80. Loar has a one year low of $53.15 and a one year high of $83.43. The business has a 50-day moving average price of $71.24 and a two-hundred day moving average price of $66.65.

Loar (NYSE:LOAR - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.07. The firm had revenue of $171.58 million for the quarter, compared to analyst estimates of $162.80 million. Loar had a net margin of 12.64% and a return on equity of 8.47%. The firm's quarterly revenue was up 39.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.23 earnings per share. Loar has set its FY 2026 guidance at 1.320-1.360 EPS. Sell-side analysts predict that Loar will post 1.16 EPS for the current year.

Insider Activity at Loar

In other news, Director Taiwo K. Danmola sold 35,000 shares of Loar stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $60.59, for a total transaction of $2,120,650.00. Following the sale, the director directly owned 54,286 shares in the company, valued at approximately $3,289,188.74. The trade was a 39.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 20.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rakuten Securities Inc. bought a new stake in shares of Loar in the 2nd quarter valued at approximately $27,000. Fifth Third Bancorp bought a new position in shares of Loar during the 4th quarter worth approximately $28,000. Sunbelt Securities Inc. boosted its stake in Loar by 238.3% in the 4th quarter. Sunbelt Securities Inc. now owns 592 shares of the company's stock valued at $40,000 after buying an additional 417 shares in the last quarter. Danske Bank A S acquired a new stake in Loar in the 4th quarter valued at $62,000. Finally, Tower Research Capital LLC TRC grew its position in Loar by 347.0% in the second quarter. Tower Research Capital LLC TRC now owns 970 shares of the company's stock valued at $84,000 after acquiring an additional 753 shares during the period.

Loar News Roundup

Here are the key news stories impacting Loar this week:

• Positive Sentiment: Q2 earnings and revenue beat expectations. Loar reported adjusted earnings of $0.38 per share, exceeding the $0.31 consensus estimate, while revenue rose 39.4% year over year to $171.6 million versus expectations of $162.8 million. Adjusted EBITDA increased 47.4% to $69.4 million, and the margin expanded to 40.5%. Loar Holdings Q2 earnings report
• Positive Sentiment: Management raised its full-year 2026 outlook. Loar now expects revenue of $665 million to $675 million and EPS of $1.32 to $1.36, above analyst expectations of approximately $652.5 million in revenue and $1.28 in EPS. The upgrade reflects continued demand across its aerospace and defense markets and strong execution on its new-business pipeline. Loar Q2 2026 results and outlook
• Neutral Sentiment: Technical traders are watching support. An analysis identified a new potential buy point after recent market strength, but noted that LOAR has pulled back and is seeking support at a key technical level. This could limit near-term momentum until the stock demonstrates renewed buying interest. Loar technical analysis
• Negative Sentiment: Zacks Research downgraded Loar from “Strong Buy” to “Hold.” The rating change may be pressuring the stock despite the earnings beat, particularly because LOAR trades at a high earnings multiple and investors may already have priced in substantial growth.

About Loar

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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