KeyBanc downgraded AAR Corp. to Sector Weight from Overweight. Analyst Michael Leshock cited a balanced risk-to-reward profile at current price levels. The stock's valuation appears fair following a significant re-rating over the past year.
Core growth remains intact within the Parts Supply segment and M&A integration. Software ramp-up continues to support the company's business trajectory.
KeyBanc warned of near-term margin pressure from a higher mix of defense sales. The move follows strong quarterly results and an expanded Woodward distribution agreement.