Stock Price & Analysis

Analysis and Insights

To determine whether to buy or sell LOAR stock, we analyze both fundamental and technical factors.

Fundamental Analysis:

LOAR Holdings has shown strong financial performance, with Q4 2024 net sales expected to be $108.1-$110.1 million, exceeding consensus estimates. The company has also raised its FY25 adjusted EPS outlook to $0.67-$0.72, indicating improved profitability. The acquisition of LMB Fans & Motors for $382 million is expected to enhance LOAR's market position and contribute to future growth.

Analyst Sentiment:

RBC Capital maintains an Outperform rating on LOAR, though the price target was lowered to $92, suggesting confidence in the stock's potential.

Technical Analysis:

LOAR's stock is currently trading at $66.01 with a pre-market increase of +1.60%. The price trend and volume analysis can provide insights into potential buy or sell signals.

Conclusion:

Given the positive earnings outlook, successful acquisition strategy, and analyst upgrades, LOAR stock presents a compelling buy opportunity. The raised EPS guidance and strong sales performance support this decision.

Buy LOAR stock.

LOAR stock is predicted to reach $72 in 2025, driven by its recent acquisition of LMB Fans & Motors and improved financial outlook. The stock's current undervaluation and strong earnings growth potential support this target. Fibonacci resistance levels and analyst upgrades also align with this price projection.

The S1 support level for LOAR Stock is $63.15 ,The R1 resistant level for LOAR Stock is $71.94.

As of the end of day on 2025-03-14, the price of LOAR Stock was $65.85.

The target price for LOAR Stock according to analyst rating is 96.00, with the highest price target at 105.00 and the lowest at 91.00. Analysts have a Moderate Buy rating on LOAR Stock overall.

The market cap of LOAR is $6.2B.

LOAR may be overvalued based on its high valuation multiples and mixed financial performance. Here's the analysis:

1. Valuation Metrics: LOAR's EV/EBITDA ratio ranges from 13.17 to 17.58, and its PS ratio is between 6.32 and 8.69, both above industry averages, indicating a premium valuation.

2. Financial Performance: While revenue grew 12.3% YoY in Q3 2024, net income rose only 2.4%, showing margin pressure. Gross margin improved slightly to 51.11%, but net margin remained low at 8.36%.

3. Acquisition Impact: The $382M purchase of LMB Fans & Motors, expected to add $40M in revenue and $20M in EBITDA, may justify some premium, but without detailed financials, the deal's impact is uncertain.

4. Analyst Sentiment: RBC Capital lowered the price target to $92 from $100, maintaining an Outperform rating, citing potential EBITDA expansion but noting the high multiple paid.

5. Stock Price: Trading at $66.01 with a 35.69% upside to the target price, LOAR's valuation reflects high growth expectations, which may not be sustainable.

In conclusion, LOAR's high multiples and modest earnings growth suggest it may be overvalued, though its strategic moves could justify its price if growth materializes.

Loar Holdings Inc. specializes in the design, manufacture, and sale of niche aerospace and defense components. It has established relationships with aerospace and defense original equipment manufacturers and Tier Ones worldwide. The Company focuses on mission-critical, highly engineered solutions with high-intellectual property content. The products it manufactures cover a diverse range of applications supporting aircraft platforms, including auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions and motion and actuation devices, among others. Its brands include VIVISUN and NEXSYS. It primarily serves three core end markets: commercial, business jet and general aviation, and defense.

LOAR stock is predicted to reach $120 by 2030, driven by strong revenue growth and expanded market share in the lidar and automotive sectors. The company's recent acquisition of LMB Fans & Motors and raised FY25 EPS outlook position it for sustained growth.

LOAR has a total of 1400 employees.