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• Wondering if AAR is still a smart buy after its big run, or if the easy money has already been made? Here is a closer look at what the market is really pricing into this stock.

• Even after slipping slightly in the last week and month, AAR is still up 34.3% year to date and 22.3% over the past year, with a 143.1% gain over five years that suggests investors have been steadily re-rating the story.

• Those moves have been supported by ongoing optimism around aviation services demand and AAR’s role as a key maintenance and logistics partner for airlines and defense customers. Investors are increasingly treating the company as a long term, infrastructure style play on global flight activity and fleet modernization.

• On our numbers, AAR scores just 2/6 on basic undervaluation checks, which suggests the market is already factoring in a fair amount of optimism, but that is only part of the story. Next, we will look at different valuation approaches and then finish with a more robust way to assess whether the current price really makes sense.

AAR scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

A Discounted Cash Flow model estimates what a company is worth today by projecting its future cash flows and discounting them back to the present. For AAR, the model uses a 2 stage Free Cash Flow to Equity approach based on analyst forecasts and longer term extrapolations by Simply Wall St.

AAR currently generates around negative $27.3 Million in free cash flow, but analysts expect this to turn positive and grow rapidly. Projections call for free cash flow to reach about $38 Million in 2026, then climb to roughly $203 Million by 2028 and around $589 Million by 2035, all in $. These rising cash flows, when discounted back, give an estimated intrinsic value of about $191.82 per share.

Compared with the current share price, this implies a 56.9% discount, suggesting the market is valuing AAR well below what its projected cash generation might justify. On DCF terms, AAR appears meaningfully undervalued in this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests AAR is undervalued by 56.9%. Track this in your watchlist or portfolio, or discover 906 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for AAR.

For profitable companies like AAR, the Price to Earnings, or PE, ratio is a practical way to gauge how much investors are willing to pay today for each dollar of current earnings. In general, higher expected growth and lower perceived risk justify a higher, or more expensive, PE multiple, while slower or riskier businesses usually trade on lower ratios.

Sanmina’s stock narrative has shifted again, with a higher price target driven largely by growing conviction in its AI and communications opportunity set. While the fair value estimate per share is unchanged at $190 and revenue growth expectations are steady at 37.29%, a slightly higher discount rate of 8.50% underscores both improved positioning and heightened execution risk around key partnerships and integration milestones. Stay tuned to see how you can track these evolving assumptions and sentiment shifts before they move the story, and potentially the stock, further.

Stay updated as the Fair Value for Sanmina shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Sanmina.

🐂 Bullish Takeaways

• BofA, led by analyst Ruplu Bhattacharya, has twice lifted its Sanmina target in recent months, first to $150 from $130 and then to $180 from $150, signaling growing confidence in the companys positioning despite maintaining a Neutral rating.

• Analysts at BofA highlight the OpenAI and AMD multi billion dollar AI datacenter partnership as a structural positive, given Sanminas role as AMDs preferred NPI partner for building, testing, and readying GPU racks for production.

• The latest BofA note cites a strong fiscal Q4 and improving conditions in the communications end market, with inventory correction easing and ZT Systems providing full rack assembly capability, both seen as supportive of Sanminas growth and integration story.

🐻 Bearish Takeaways

• Despite successive price target hikes to $180, BofA continues to rate Sanmina at Neutral. This underscores concerns that much of the AI and communications upside may already be reflected in the current valuation.

• BofA flags significant execution risk, pointing to Sanmina needing to integrate the ZT Systems business and then successfully ramp programs with AMD. This is occurring against an uncertain macro backdrop that could pressure demand or delay deployments.

• Analysts also stress that the financial impact of the OpenAI and AMD partnership is hard to quantify, with key variables including how many GPU racks Sanmina is awarded and the possibility that customers choose competing partners for NPI testing and manufacturing.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

• Sanmina completed its previously announced share repurchase program, buying back 801,093 shares, or about 1.49% of shares outstanding, for a total of $60.8 million, with no additional shares repurchased between June 29, 2025 and September 27, 2025.

• The company issued earnings guidance for the first quarter ending December 27, 2025, projecting revenue in the range of $2.9 billion to $3.2 billion.

• The completion of the buyback and the new revenue outlook together indicate that management is focusing on capital returns to shareholders while supporting the current demand environment for Sanmina.