Auriga Reiterates Hold, $20 PT on AAR

In a note out today, Auriga reiterated a hold rating and $20 price target on aerospace firm AAR (NYSE: AIR). The research firm also reduced its full year 2012 EPS estimate on the stock to $1.90 from $2.

"AAR reported a mixed second quarter, as better-than-expected results in Aviation Supply Chain were offset by weaker MRO and Government & Defense Services. Looking forward, although we are encouraged by the company's recent acquisitions (Telair International and Nordisk Aviation Products) from Teleflex, we are staying on the sidelines as we remain concerned on its exposure to defense markets given the current political backdrop. We reiterate our HOLD rating and $20 price target," Auriga said in the note.