StandardAero: Up 19% Since My Last Article, And I'm Cutting My Rating

StandardAero is downgraded from A- (Strong Buy) to B- (soft Buy) at $25.50, with a new $29.50 price target. Engine Services margin improved to 15%, and earnings guidance increased, but Component Repair underperformed, and contract assets continue to build. The investment thesis now hinges on Q4 free cash flow delivery ($254M–$284M needed) and contract asset reduction to justify further upside.