StandardAero, Inc. (SARO) Approves $450M Buyback Program as Bernstein SocGen Affirms Outperform Stance

StandardAero, Inc. (NYSE:SARO) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 10, StandardAero, Inc. (NYSE:SARO)’s board of directors approved a $450 million stock repurchase program. The company is to conduct the program subject to market conditions and other factors.

The repurchase program underscores the company’s commitment to shareholder value by providing a tool to allocate capital to accretive investments. It also affirms the company’s financial position, allowing it to focus on growth opportunities, facilities, technology, and capabilities in addition to the buyback.

On November 24, Bernstein SocGen Group reiterated its Outperform rating on StandardAero, with a $39 price target, even as the company faces cash flow concerns. According to the research firm, the company’s growth trajectory remains intact, driven by high demand for MRO (Maintenance, Repair, and Overhaul) services and its strong market position.

Additionally, the company has negotiated contractual changes with customers who will purchase materials directly from OE suppliers. While the modification is expected to reduce revenue by $300-$400 million, profit margins are expected to improve. Contractual restructuring should also have a positive impact on cash flow through reduced inventory.

StandardAero, Inc. (NYSE:SARO) is a primary global independent provider of Maintenance, Repair, and Overhaul (MRO) services for aircraft engines and components, serving business, commercial, military, and helicopter markets.

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Disclosure: None. This article is originally published at Insider Monkey.