5 Best Mid Cap Defense Stocks to Invest In

3. AAR Corp. (NYSE:AIR)

Number of Hedge Fund Holders: 36

AAR Corp. (NYSE:AIR) is among the 7 Best Mid-Cap Defense Stocks to Invest In. On April 9, KeyBanc lifted its price target on the stock to $132 from $120, while reiterating an Overweight rating.

According to TipRanks, the firm noted a significant uptick in aerospace OEM orders, with production levels now stabilizing and supplier inventories suggesting ongoing restocking to support ramps.

KeyBanc analyst Michael Leshock described the aerospace and defense aftermarket as tight, indicating increased fleet life. He also highlighted that the conflict in the Middle East augurs well for defense demand, but warned that the resulting oil crisis could pressure air travel.

As of the close of business on April 10, AAR Corp. (NYSE:AIR) is a Strong Buy based on the recommendations from six analysts. The stock has a one-year average share price target of $131.20, representing an upside of 9%.

In other news, late last month, the company said it had secured two pallet contracts from the U.S. Air Force with a combined value of $450 million. This includes a $160 million agreement to provide repair services for the 463L Legacy Cargo Pallet, and a $290 million contract to manufacture 463 legacy air cargo pallets.

AAR Corp. (NYSE:AIR) is an aerospace and defense aftermarket solutions company that supports commercial and government clients through its wide network of operations spread across 20 countries. It operates through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.