Why Citi Recommends Buying Loar Holdings Inc (LOAR) Stock Now

Loar Holdings Inc (NYSE:LOAR) is one of billionaire David Abrams’ top stock picks with upside potential. The stock makes up nearly 40% of the billionaire’s portfolio. Some 25 hedge funds have positions in Loar Holdings. In the past month, Loar shares have gained more than 27% and still have upside potential. On June 25, Citi [...]

Loar Holdings Inc (NYSE:LOAR) is one of billionaire David Abrams' top stock picks with upside potential. The stock makes up nearly 40% of the billionaire's portfolio. Some 25 hedge funds have positions in Loar Holdings.

In the past month, Loar shares have gained more than 27% and still have upside potential. rommma/Shutterstock.com On June 25, Citi raised its price target on Loar Holdings Inc (NYSE:LOAR) shares to $87 from $71 while keeping a Buy rating on the stock. Additionally, the brokerage has placed what it calls an "upside 90-day catalyst watch" on Loar ahead of the company's Q2 2026 report.

Citi believes that improving commercial and defense aftermarket conditions will drive valuation upside in Loar shares. According to the firm, Loar remains the only aftermarket stock that is still trading at a large discount to its historical valuation range. Loar had a strong start to 2026, with Q1 net sales soaring 36% YoY to $156.1 million and adjusted EPS rising 21.4% to $0.34.

These solid results led the management to raise the full-year 2026 outlook. The company now expects to report 2026 net sales in the range of $645 million to $655 million. It previously projected revenue in the range of $640 million to $650 million.

It raised the adjusted EPS forecast to a range of $1.26 to $1.30, up from a range of $1.21 to $1.25. Loar Holdings Inc (NYSE:LOAR) manufactures and supplies proprietary components for the aerospace and defense industries. The company has customers globally, and its portfolio includes sensors, braking systems, and cabin lighting.

While we acknowledge the potential of LOAR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Seth Klarman Stock Portfolio: 10 Best Stocks to Top 10 Mid Cap Stocks to Own for Decades According to Hedge Funds.

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