Morgan Stanley Resumes Coverage of Loar Holdings with $100 Target Price, Citing 11.1% Sales Growth

Morgan Stanley has resumed coverage of Loar Holdings Inc. (LOAR.US), assigning a "buy" rating and setting a target price of $100. The firm's analysis highlights the company's effective strategy of driving growth through both organic and inorganic means.

In terms of organic growth, Loar Holdings reported an 11.1% year-over-year increase in net sales for the first quarter of 2025, amounting to $102 million. This brings the total net sales for the quarter to $1.02 billion. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin for the quarter improved from 36.0% in the same period last year to 37.6%. This data underscores Loar Holdings' strengths in management and strategic execution.

The company is taking multiple initiatives to outperform the market, including new product development, strengthening customer relationships, exploring cross-selling opportunities, and leveraging its existing product portfolio to enhance profitability. Additionally, the company's management is optimistic about acquisitions, supported by a robust pipeline of potential opportunities.

This confidence is further bolstered by record order volumes from end markets, indicating strong demand for the company's products. Overall, the resumption of coverage and the setting of a target price reflect Morgan Stanley's confidence in Loar Holdings' sustained performance and future prospects.