Citi Raises LOAR Price Target to $87 Amid Strong Q1 Performance

Citi has maintained its 'Buy' recommendation on Loar Holdings Inc (NYSE:LOAR) while raising its price target from $71 to $87, citing improving commercial and defense aftermarket conditions. The firm placed an 'upside 90-day catalyst watch' on LOAR ahead of its Q2 2026 earnings report, highlighting the stock's potential despite a 27% surge in the past month. LOAR, a top holding of billionaire David Abrams, remains undervalued relative to its historical valuation range among aerospace aftermarket stocks.

Citi's Strategic Outlook and Market Positioning

■Defense and commercial aftermarket recovery identified as primary driver of valuation upside.

■Only aerospace aftermarket stock trading at significant discount to historical multiples.

Stock Performance and Institutional Interest

■Q1 2026 saw 36% YoY sales growth ($156.1M) and 21.4% adjusted EPS rise ($0.34).

■25 hedge funds hold positions, reflecting growing investor confidence.

Company Fundamentals and Forward Guidance

■Full-year 2026 sales outlook raised from $640M-$650M to $645M-$655M.

■Adjusted EPS forecast revised upward to $1.26-$1.30 from $1.21-$1.25.

■Aerospace/defense component portfolio (sensors, braking systems, cabin lighting) supports global customer base.

Ege Kaan's Take: While Wall Street views LOAR as an undervalued aerospace play, AI-focused equities may offer higher return potential with lower downside risk. Citi's short-term catalyst watch aligns with expectations that Q2 results will further validate the stock's recovery trajectory.