Is StandardAero Stock Poised for a Valuation Reassessment?

Market strategists at RBC Capital Markets suggest that shares of StandardAero could be in line for a significant valuation reassessment. This outlook hinges on an optimistic forecast for the aircraft engine market and revised expectations for the year 2026. The immediate test for the company will be its upcoming quarterly earnings report this Wednesday.

RBC Capital views the current share price as an attractive entry point. Their analysis indicates that the market has yet to fully price in the stabilizing influence of a positive outlook for aircraft engines. This environment, they argue, makes a “re-rating”—or an upward revision of the stock’s market valuation—a likely scenario.

A Surge in Demand from Supply Constraints

The entire Maintenance, Repair, and Overhaul (MRO) sector is currently benefiting from unique market dynamics. Aircraft manufacturers, including Airbus, have been forced to reduce production targets for their A320neo family due to engine shortages. This, in turn, is extending the service life of existing aircraft fleets.

Consequently, demand for extensive maintenance and engine overhauls has surged. StandardAero holds a strategic position to capitalize on this trend of prolonged aircraft utilization, as it is a specialized service provider for CFM LEAP and CFM56 engines.

Should investors sell immediately? Or is it worth buying Standardaero?

Wall Street’s Bullish Consensus

The prevailing sentiment on Wall Street toward StandardAero is positive. With an average price target of approximately $33.50, market observers see further upside from the current trading level near $31.

While RBC Capital maintains a notably optimistic target of $37, other institutions like UBS and Bank of America have set their expectations within a $30 to $34 range. The current consensus rating for the stock is a clear “Buy.”

All Eyes on February 25th

The focal point for investors is Wednesday, February 25th, when StandardAero is scheduled to release its fourth-quarter and full-year 2025 results after the U.S. market closes. Market expectations are for earnings per share (EPS) of $0.25 on quarterly revenue of about $1.57 billion.

However, the primary driver for the stock’s future trajectory will likely be management’s confirmation of its 2026 forecast, which forms the basis for RBC’s optimistic assessment. Investors are also awaiting new details on the order backlog for the critical LEAP engine program. The analyst conference call is set for the same evening at 11:00 PM Central European Time.