Loar (LOAR) secured about $200 million of new product wins that build confidence in the company's growth outlook, RBC Capital Markets said in a Friday note.
The company reported 12% organic revenue growth in Q2 as total revenue rose 39% year over year to $171.6 million.
Management expects the new business wins, most of which are tied to commercial aerospace original equipment, to support future aftermarket sales, RBC said.
The company continues to take a long-term view to pricing, potentially achieving 50% plus margins as its portfolio matures, according to the note.
Loar also retains capacity for additional mergers and acquisitions and expects the company to maintain its pace of one to two deals annually, the analysts said.
RBC maintained its outperform rating on Loar and raised its price target to $85 from $80.
Price: $71.78, Change: $-0.77, Percent Change: -1.05%