StandardAero falls after Jefferies cuts to 'hold'

StandardAero

02/06/2026 11:42

** Shares of aircraft maintenance firm StandardAero SARO.N fall 1% to $27 premarket
** Jefferies downgrades SARO's ratings to "hold" from "buy", cuts price target to $30 from $34
** New PT still implies an upside of 9.6% to the stock's last close
** Brokerage says it expects slower 2026 air traffic growth with recovery in 2027, but warns co's legacy engines will keep declining and pose downside risk to future services revenue
     ** Adds SARO is improving margins on key engine programmes, but profitability still faces risk if higher-margin legacy engine work declines
** Jefferies lowers Q2 EPS forecast to 37 cents/share from 39 cents/share
** 11 of 14 brokerages rate the stock "buy" or higher, 3 "hold"; their median PT is $35 - data compiled by LSEG
** As of last close, stock had fallen 4.6% YTD 

 (Reporting by Apratim Sarkar in Bengaluru)
 ((Apratim.Sarkar@thomsonreuters.com))