StandardAero's IPO saw shares surge 36%, leading to a high valuation of around 40 times earnings, making the stock unattractive to me at current levels. The company, a leading provider of aerospace engine aftermarket services, has shown strong revenue growth but commands high valuations, while it carries some debt. Despite solid financial performance, the high valuation and risks such as oil prices, labor market, and competition make the stock a risky investment.
StandardAero CEO Russell Ford discusses the aircraft maintenance services provider's trading debut and the state of the aerospace industry on Bloomberg Television. StandardAero shares climbed 31% in the company's trading debut, after the firm and some of its investors raised $1.44 billion in an IPO.
StandardAero's shares opened 29% above the initial public offering price in their market debut on Wednesday, giving the Carlyle-backed aviation maintenance services provider a market value of about $10.4 billion.
Russell Ford, StandardAero CEO, joins CNBC's 'Money Movers' to discuss the company's nearly $1.5 billion raised in its initial public offering, growth plans for the future, and more.
Jet-engine aftermarket company prices above the top of its range for its trading debut on Wednesday.
StandardAero, which was founded in 1911, serves commercial-aerospace, military and helicopter, and business-aviation clients with about 7,300 employees working at more than 50 facilities across the globe.