StandardAero (SARO) stock is back in focus after the company delivered its first CFM LEAP engine performance restoration and issued preliminary 2025 guidance pointing to higher revenue and a sharp increase in expected net income.

The latest CFM LEAP performance restoration milestone and the fresh 2025 guidance have arrived as momentum has picked up, with a 90-day share price return of 13.9% and a 1-year total shareholder return of 11.49%, suggesting investors are reassessing both growth potential and risk around the current US$30.57 share price.

If this kind of aircraft engine aftermarket story has your attention, it could be a good moment to see what else is on the move with our 24 power grid technology and infrastructure stocks as another infrastructure themed opportunity set.

With SARO trading at US$30.57, sitting below the US$36.25 analyst target and with an intrinsic estimate suggesting a smaller 4.5% discount, you have to ask: is this a genuine opportunity or is future growth already priced in?

Most Popular Narrative: 13.9% Undervalued

At a last close of $30.57 versus a narrative fair value of $35.50, the current setup leans toward upside according to the most followed view.

Accelerating LEAP engine inductions, a growing backlog and expanding OEM authorized repair content position StandardAero to scale toward roughly $1 billion of LEAP revenue in the next few years. This is expected to support sustained double digit top line growth and higher earnings as the program turns margin positive in 2026.

Curious what sits behind that confidence in higher earnings and LEAP revenue ramp? The narrative leans heavily on rising margins, steady revenue growth and a valuation multiple shift. The full breakdown shows how those moving parts stack up to support that $35.50 fair value.

Result: Fair Value of $35.50 (UNDERVALUED)

However, that upside view depends on LEAP and CFM56 moving from zero margin on schedule, and on parts shortages easing rather than turning into a longer term drag.

Another View: Expensive On Earnings

That 13.9% narrative undervaluation sits awkwardly beside the earnings multiples. At $30.57, StandardAero trades on a P/E of 55.1x versus a fair ratio of 33.1x, the US Aerospace & Defense average of 40.1x and a peer average of 41.5x, which points to meaningful valuation risk if sentiment cools.

Build Your Own StandardAero Narrative

If you read this and think the assumptions miss something, or you prefer to test the numbers yourself, you can build a personalised view in minutes by starting with Do it your way.

A great starting point for your StandardAero research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Ready to hunt for your next idea?

If StandardAero has sharpened your focus, do not stop here; the widest opportunities often sit just outside the first stock that catches your eye.

• Target potential mispricing by scanning our list of 53 high quality undervalued stocks that score well on fundamentals and may still be flying under the radar.
• Secure your income stream by reviewing 14 dividend fortresses that pair 5%+ yields with an emphasis on resilience and consistency.
• Prioritise peace of mind by checking out 86 resilient stocks with low risk scores that our model flags as having more resilient risk profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.