JPMorgan: Investors Overreacted by Selling European Defense Stocks Amid Ukraine Peace Hopes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy AIR?
Source: MarketWatch
European Defense Stocks Decline: European defense stocks have fallen approximately 10% in the past month, influenced by discussions of a potential peace deal to end the Ukrainian war.
Analyst's Perspective: JPMorgan analyst David Perry argues that the market's reaction to the peace deal rumors is unjustified, suggesting it presents a good investment opportunity in the defense sector.
Uncertainty of Peace Deal: Perry believes that the proposed peace plan is unlikely to be accepted by Ukraine, indicating that the end of the war may not be near.
Potential Increase in Defense Spending: If a peace deal were to be signed under the current terms, it could be seen as a Russian victory, which Perry suggests would lead to increased defense spending in Europe.
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Analyst Views on AIR
Wall Street analysts forecast AIR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AIR is 101.25 USD with a low forecast of 93.00 USD and a high forecast of 107.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 113.570
Low
93.00
Averages
101.25
High
107.00
Current: 113.570
Low
93.00
Averages
101.25
High
107.00
About AIR
AAR Corp. is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. The Company’s Parts Supply segment consists of its sales of used serviceable engine and airframe parts and components and distribution of new parts. The Repair & Engineering segment consists of its maintenance, repair, and overhaul (MRO) services across airframes and components. The Integrated Solutions segment consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the United States (U.S.) Department of Defense, U.S. Department of State, and foreign governments, flight hour component inventory and repair programs for commercial airlines, and integrated software solutions, including Trax. The Expeditionary Services segment consists of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and non-governmental organizations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Continuity: AAR's Chairman and CEO John M. Holmes stated that Wolin played a key role in shaping the company's current strategy, and his return is anticipated to further drive the company's growth plans.
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