Credit Suisse Initiating Coverage on AAR Corp

Credit Suisse is out with a research report on AAR Corp (NYSE: AIR) and is initiating coverage with a Neutral rating and a $23 price target on shares.

In a note to clients, Credit Suisse writes, "The combination of high exposure to potentially slower aftermarket services activity and moderating defense spending drive our Neutral rating. We blend average EV/EBITDA and P/E FY2 multiples, and DCF analysis to derive our $23 TP, offering 12% upside potential. Our FY'12-'14 EPS estimates of $1.95, $2.26, and $2.44 are below the street. All eight peer ratings are buy."

Shares of AIR closed at $20.14 yesterday.