RBC cuts Applied Aerospace & Defense stock price target on costs
RBC Capital reduced its price target for Applied Aerospace & Defense (AADX) to $15 from $18, citing higher costs. The company beat Q3 2026 EPS and revenue estimates but lowered fiscal 2026 guidance. Shares have fallen 51% in six months. Adjusted EBITDA was $39.7M, with a 1.4x book-to-bill ratio and $1.26B backlog. Morgan Stanley raised its target to $17, maintaining an Equalweight rating.
How this was made
The 30-second read
Why it matters
Analyst price‑target adjustments provide new actionable data for traders evaluating the stock.
Market read
New analyst guidance creates a short‑term trading catalyst for AADX.
What to watch
Backlog of $1.26 B and a solid book‑to‑bill ratio may support future revenue growth beyond current guidance.
Background
Applied Aerospace & Defense reported Q3 FY2026 earnings that beat estimates, prompting analyst target revisions.
Ticker impact
RBC lowered its price target to $15 and Morgan Stanley raised theirs to $17, providing fresh analyst guidance on Applied Aerospace & Defense.
potential modest pressure as the market prices in the lower RBC target, offset by some support from the higher Morgan Stanley target
Analyst target changes are primary news; the conflicting views imply limited directional bias.
Market effects
May influence sentiment in the aerospace and defense sector as peers are re‑evaluated.
Limited to U.S. small‑cap investors focused on defense suppliers.
Low, confined to niche market participants.
Counterpoint
Despite the lower RBC target, the company's strong Q3 earnings beat could sustain the stock above $15.
Key entities
- companyApplied Aerospace & Defense
U.S. listed aerospace and defense supplier (NYSE:AADX).
- analystRBC Capital
Investment bank that lowered its price target to $15.
- analystMorgan Stanley
Investment bank that raised its price target to $17.
