Stock Price & Analysis

Based on the analysis of SARO stock, it is currently in a neutral to bullish zone with mixed technical indicators and analyst sentiment. The stock shows strength with positive price movements but faces resistance at higher levels. Given the mixed signals, it is recommended to hold SARO stock at this time.

The price prediction for SARO stock in 2025 is expected to reach $30, driven by its current bullish momentum and potential to break above Fibonacci resistance levels.

The S1 support level for SARO Stock is $26.21 ,The R1 resistant level for SARO Stock is $29.23.

As of the end of day on 2025-03-19, the price of SARO Stock was $28.01.

The target price for SARO Stock according to analyst rating is 36.33, with the highest price target at 38.00 and the lowest at 34.00. Analysts have a Strong Buy rating on SARO Stock overall.

The market cap of SARO is $9.6B.

Analysis and Insights

Valuation Metrics:

• P/E Ratio: SARO's P/E ratio of 428.34 is significantly higher than the industry average, indicating potential overvaluation.
• EV/EBITDA: At 13.04, this metric suggests the stock is expensive relative to earnings.
• Price-to-Sales (P/S): The P/S ratio of 2.11 indicates a premium valuation based on sales.
• Price-to-Book (P/B): The P/B ratio of 0.294 is low, suggesting undervaluation relative to book value.
• Dividend Yield: A moderate yield of 1.32% provides some income appeal.

Analyst Sentiment:

• Morgan Stanley lowered the price target to $32 from $33, maintaining a Hold rating, citing strong demand but margin constraints.
• UBS also maintains a Hold rating with a price target of $28, reflecting cautious optimism.

Recent Performance:

• SARO reported strong Q4 revenue growth of 21.8% year-over-year but missed EPS estimates by $0.20, leading to a 15.87% stock price drop.

Market Environment:

• The Buffett Indicator and Price/Earnings Model suggest the market is overvalued, with potential for correction.
• The inverted yield curve signals recession risk, though unemployment data is stable.

Sentiment:

• The Fear & Greed Index shows "extreme fear," indicating investor pessimism, which might present a buying opportunity.

Conclusion:

SARO appears overvalued due to high P/E and EV/EBITDA ratios, mixed analyst sentiment, and market valuation concerns. However, strong revenue growth and moderate yield are positives. Investors should exercise caution, considering the stock's premium valuation and market uncertainties.

StandardAero, Inc. is an independent, pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets. The Company provides a comprehensive suite of critical, value-added aftermarket solutions, including engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. The Company’s segments include Engine Services and Component Repair Services. The Engine Services segment provides engine and airframe maintenance, repair, overhaul and related services to customers in the commercial aerospace, military & helicopter, and business aviation end markets. The Component Repair Services segment supports the commercial aerospace, military and helicopter and other end markets, including marine and land, and oil and gas with engine piece part repair, accessory repair and engine new part manufacturing.

The price prediction for SARO stock by 2030 is expected to range between $50 and $70. This forecast is based on the stock's current momentum, with a recent price of $28.89 and positive market percentage changes, indicating strong growth potential. The prediction aligns with broader market trends suggesting continued growth in the technology sector.

SARO has a total of 7500 employees.