StandardAero, Inc. (SARO): A Bull Case Theory

We came across a bullish thesis on StandardAero, Inc. on X.com by FullySynergized. In this article, we will summarize the bulls’ thesis on SARO. StandardAero, Inc.'s share was trading at $27.17 as of October 8th. SARO’s trailing and forward P/E were 67.62 and 23.81 respectively according to Yahoo Finance.

SARO, a recently listed aerospace engine MRO company, presents a nuanced investment opportunity despite recent market underperformance. The company has delivered strong revenue and EBITDA growth, even raising guidance, but its stock has lagged due to weak free cash flow conversion, overhang from secondary shares held by Carlyle, and investor preference for OEMs over MROs amid high expectations for new engine deliveries.

SARO benefits from significant visibility into long-term growth, driven by high single-digit to low double-digit expansion in LEAP engine maintenance, repair, and overhaul (MRO) demand, along with share gains in the mature CFM56 platform and secular growth in its component repair business. The company’s margin profile is expected to outperform expectations, supported by efficiency improvements and a favorable mix from higher-margin LEAP work. These factors create a scenario where the market may be underestimating SARO’s sustainable cash generation and growth potential.

The combination of robust secular tailwinds, operational leverage, and a leading position in the engine MRO ecosystem positions SARO to benefit from both structural and cyclical growth in aerospace maintenance. Even with the current overhang and near-term free cash flow concerns, the company offers investors exposure to a growing segment of the aerospace aftermarket with improving profitability and predictable demand. As MRO visibility continues to strengthen and secondary share overhang diminishes, the stock has potential for rerating, making SARO a compelling long-term opportunity in the aerospace maintenance space.

Previously we covered a bullish thesis on HEICO Corporation (HEI) by Bulls On Parade in April 2025, which highlighted the company’s disciplined execution, niche dominance in aerospace and defense, steady revenue growth across Flight Support and Electronic Technologies segments, and conservative capital allocation. The company's stock price has appreciated approximately by 32% since our coverage. The thesis still stands as HEI continues to compound value. FullySynergized shares a similar perspective but emphasizes SARO’s growth visibility in aerospace engine MRO and margin upside from efficiency gains.

StandardAero, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held SARO at the end of the second quarter which was 50 in the previous quarter. While we acknowledge the potential of SARO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.