TD Cowen analyst Moshe Orenbuch maintained a Buy rating on Aercap Holdings (AER – Research Report) yesterday and set a price target of $130.00.
Moshe Orenbuch has given his Buy rating due to a combination of factors that highlight Aercap Holdings’ strong financial performance and strategic initiatives. The company’s 2025 guidance is seen as conservative, yet historically, Aercap has consistently exceeded its initial guidance by substantial margins. This trend, coupled with the announcement of a $1 billion share repurchase program, which could significantly enhance earnings per share, underscores the company’s robust financial health.
Additionally, Aercap’s lease revenue prospects are promising, with high lease rates and extensions acting as favorable factors, despite some near-term offsets. The company has a minimal number of aircraft up for renewal in 2025, and a significant portion is already re-leased or sold, positioning it well for future growth. Furthermore, Aercap’s gain on sale margins have been notably strong, driven by a favorable supply-demand mismatch and strategic aircraft acquisitions at discounts. These elements collectively support the positive outlook and justify the Buy rating.
Orenbuch covers the Financial sector, focusing on stocks such as SLM, Capital One Financial, and OneMain Holdings. According to TipRanks, Orenbuch has an average return of 22.3% and a 69.20% success rate on recommended stocks.
In another report released yesterday, Citi also reiterated a Buy rating on the stock with a $117.00 price target.