Order volume reaches a new high. Morgan Stanley maintains a "buy" rating for Loar (LOAR.US)

Breathing, Morgan Stanley maintains a "buy" rating on aerospace components manufacturer Loar (LOAR.US) with a target price of $100. Analyst Kristine Liwag stated that the reiteration of the bullish sentiment is based on the company's strong performance in the first quarter of 2025 and an upward revision in the outlook for 2025. In the first quarter of the 2025 fiscal year, the company's net sales reached $114.7 million, a 24.8% year-on-year increase. The growth was mainly driven by strong demand in the defense, commercial aftermarket, and commercial original equipment manufacturer (OEM) sectors. It is worth noting that net profit also increased from $13.1 million last year to $15.3 million. Management pointed out that the defense business sales soared by 30% driven by strong demand across multiple platforms and market share gains from new product launches. Loar also highlighted that its order volume and backlog in all market sectors have reached historical highs. As a result, management has raised the full-year net sales expectations from the previous range of $480 million to $488 million to $482 million and $490 million.